US-based soft drinks group Jones Soda is to enter talks with a rival suitor to Reed’s.
The two firms earlier this month signed a letter of intent to merge, with California-based Reed’s as the surviving partner.
Reed’s was to issue 4.5m common shares and pay out a collective US$2.6m in cash, equating to around $0.10 per share, to existing Jones shareholders.
However, Jones Soda today (23 March) said it has terminated the exclusivity provisions of the letter of intent in order to explore an “unsolicited, nonbinding transaction proposal” submitted by a third party.
Jones Soda said it has informed Reed’s that it continues to be interested in “discussing a transaction” with the firm, but that the board of directors also intends to “investigate the third party proposal and any other strategic alternatives presented to the board”.
Jones said it will reimburse Reed’s for its third party out-of-pocket expenses, though not more thannot to exceed $75,000).
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“The company does not intend to disclose developments with respect to evaluation of these or any other potential transactions unless and until its board of directors deems it appropriate,” Jones Soda said.
Reed’s confirmed the termination of the letter of intent adding that it respects Jones’ “fiduciary responsibility” to its shareholders to consider any offers to buy the company.
However, Chris Reed, founder, chairman and CEO of Reed’s, said: “I would like to reiterate that our offer is based mostly on stock, which has not yet reflected the value of the post merger company.
Subscribe to Just Drinks for just £1 for 1 month
Stay ahead with unbiased news, expert commentary, and in-depth features on global topics.
As a trusted provider of data and insights, Just Drinks collaborates closely with industry leaders and professionals to offer unique thought leadership and analysis. Gain a deeper understanding of the drinks industry’s trajectory and the priorities shaping the profession.
What’s included in your subscription:
- Personalized Access: Secure login to Just Drinks
- Industry News & Expert Commentary: Timely updates and exclusive C-level interviews.
- Case Studies & Deep Dives: Real-world applications and in-depth analyses.
- Exclusive Subscriber Newsletter: Weekly top features, plus a new thematic report and webinar.
Ready to stay informed?
Subscribe to unlock exclusive content.
Already a subscriber? Sign in to access your account.
Pleasecomplete this form to request more information, and a representative will be in touch shortly.
