US: Jones Soda unveils US$10m financing plan
By just-drinks.com editorial team | 14 June 2010
Jones Soda secures funds
Jones Soda has secured access to up to US$10m in extra funds after signing an equity financing deal with Glengrove Small Cap Value Ltd.
The deal allows Jones Soda to sell up to $10m of its common stock to Glengrove over an approximate two-year period, the soft drinks firm said today (14 June).
Jones Soda's finances have been under scrutiny for several months after the firm put itself up for sale but then pulled out of a deal to be acquired by Reed's earlier this year.
"Jones Soda is not obligated to utilise the facility and remains free to enter into other financing transactions," said the group today.
"When and if Jones Soda elects to use the facility, the number and price of shares sold in each draw will be determined by a contractual formula, whereby Jones Soda will issue shares to Glengrove at a pre-negotiated discount to the daily volume weighted average price of Jones Soda's common stock over a preceding period of trading days," said Jones.
The firm said it intends to use the proceeds from any share sale to fund for new marketing programmes, to secure and grow larger distributor and national retail accounts and for working capital and other general corporate purposes.
"The facility has a competitive cost of capital and flexible structure and offers a means to strengthen our financial position and support our continuing efforts to expand the distribution of our brands in new and existing markets," said Jones Soda CEO Bill Meissner.
Last month, Jones Soda announced a deal with retail giant Walmart.