Drinks Americas Holdings, Inc. announced a private placement of 8% convertible promissory notes for gross proceeds of $35,000 on August 8, 2013. The company issued the notes to an accredited investor, Jose Manuel Toscana Gonzalez. The notes will carry an interest of 8% per annum and will mature on August 8, 2014. The debentures are convertible, at the option of the holder, into shares at a conversion price equal to 35% of the lowest trading price of shares for the 24 months preceding their original issuance dates, which correspond to the dates on which the respective portion of the aggregate purchase price received by the company. However, in the event of a default, the debentures will be convertible at a 75% discount to the average of the three lowest trading prices of the ten trading days prior to such conversion. In no event may the notes be converted at a conversion price below the par value of shares. All overdue accrued and unpaid interest to be paid hereunder shall entail a late fee at an interest rate equal to the lesser of 17% per annum or the maximum rate permitted by applicable law which shall accrue daily from the date such interest is due hereunder through and including the date of actual payment in full.

On October 31, 2013, the company announced that it has received $70,000 in tranche closing. The notes issued as part of the tranche will mature on October 31, 2014. The company has received $105,000 in funding from the transaction.

On November 26, 2013, the company announced that it has received $150,000 in tranche closing. The notes issued as part of the tranche will mature on May 26, 2014. The company has received $255,000 in funding from the transaction.