Jamba Inc, owner of Jamba Juice Co, has completed its previously announced sale of $35m in convertible preferred stock.


The stock becomes redeemable by Jamba at the election of the purchasers in June 2016, unless converted earlier, and includes an 8% annual dividend. The preferred stock is convertible into common shares at a price of $1.15 per share.


The funding was led by a $19.55m investment by private equity fund Mistral Equity Partners, with the remaining $15.45m investment made by a company controlled by the Serruya family.


"We are pleased to have completed this financing, which will be used to repay our senior term note and provide us greater financial flexibility to execute our Blend plan," said James White, president and CEO of Jamba.


"With the closing of this transaction we also have the added benefit of three additional members joining our board whom we believe will contribute tremendously to the company's success."


Effective upon the closing of the transaction, Andrew Heyer, CEO of Mistral Equity Partners, managing director Beth Bronner, and Michael Serruya, co-founder of CoolBrands International, will join the board.

In March, Jamba reported a net loss of US$149m for 2008 and indicated that it plans to cut jobs in 2009. Net loss for the 12 months of 2008 deepened to US$149m, compared to $113.3m in 2007.