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LINE OF CREDIT
3 Months Ended
Mar. 31, 2013
Notes  
LINE OF CREDIT

NOTE 4 - LINE OF CREDIT

 

On March 22, 2013, the Company executed a line of credit agreement with a third party for $100,000 to be used as purchase order financing for the production of liquor brands. The line of credit bears interest at twenty percent (20%) on the advanced amount.  In consideration for this line of credit, the company issued warrants for 300,000 shares of common stock at an exercise price of $1.00 per share, exercisable for five (5) years. The Company issued 3,000,000 shares of preferred stock as collateral which are being held in trust.

 

As of March 31, 2013, there has been $43,902 received on this line of credit. This amount is due to be repaid in September 2013. Upon receipt of these funds, the money was then advanced to the distribution company for use in production of the liquor brands in relation to purchase orders received from distributors.