Panache Beverage Inc. (OTCPK:WDKA) announced a private placement of promissory note with new investor, Consilium Corporate Recovery Master Fund, LTD., managed by Consilium Investment Management, LLC for gross proceeds of $2,100,000 on December 21, 2012. The note is due on December 21, 2015. The company will pay the accrued and unpaid interest with respect to such principal plus the accrued and unpaid late charges with respect to such principal and interest on the 10th day of each quarter beginning on April 10, 2013 through and including October 10, 2015. The notes will bear interest at 12% per annum with interest payable quarterly in arrears on the installment dates. A final payment of all principal due under the note, plus accrued interest to date, shall be made on December 21, 2015. The company has the right, at any time, without penalty, to prepay the note in part or in full. The default rate of interest is 17% per annum. Charles Cassel, Managing Director of Consilium Investment Management, LLC will join the board of the company. The company also issue warrants to acquire 2,760,000 shares at an exercise price of $0.50 per share expiring on December 21, 2015. The securities have been issued pursuant to Regulation D.

On December 21, 2012, Panache Beverage Inc. closed the transaction.