Orange 21 Inc., the parent of Spy Optics, announced that its wholly-owned subsidiary Orange 21 North America Inc. (O21NA), entered into a $1.0 million promissory note with one of the company’s shareholders, Costa Brava Partnership III, L.P, effective Oct. 5.
The promissory note is an expansion of the $3.0 million promissory note entered into with Costa Brava in March 2010 to $4.0 million and has similar terms and conditions. Proceeds from the promissory note are expected to be used for working capital purposes and other corporate expenses.
Seth Hamot, Orange 21 Inc.'s chairman of the board of directors, is the president and sole member of Roark, Rearden & Hamot, LLC, which is the sole general partner of Costa Brava. Hamot commented, “We are quite pleased to help our company grow. We believe Orange 21 and its portfolio of brands have lots of opportunity in front of them.”