Jones Soda announced plans today to raise $3.2 million in a registered direct offering of common stock and warrants. Combined with a recently secured $2 million credit facility, the proceeds from the sale will allow Jones to “significantly enhance [its] financial position and will further enable [the company] to work towards sustainable profitability,” according to Jones Soda CEO Bill Meissner.
With new funding in hand, Jones will look to dramatically expand its retail presence and the availability of its products in 2012. Jones completed the creation of a national distribution network last year, and the boutique soda company has secured retail authorizations from a number U.S. chains in 2012, including Safeway, Winn-Dixie, Publix, Ralph’s, Shop-Rite, Kum & Go convenience stores as well as all U.S. military commissaries.
Here is the official press release about the registered direct offering:
SEATTLE, WA–(Marketwire – Feb 2, 2012) – Jones Soda Co. (NASDAQ: JSDA), a leader in the premium soda category and known for its unique branding and innovative marketing, today announced it has entered into a definitive agreement with institutional and accredited investors to sell common stock and warrants in a registered direct offering with gross proceeds of approximately $3.2 million.
“The proceeds of this equity financing will support our cash flow as we continue our mission to increase sales and distribution and improve the bottom line,” said Bill Meissner, CEO of Jones Soda. “We believe that we are headed in the right direction, and these funds, combined with our current cash and our previously announced $2 million credit facility, significantly enhance our financial position and will further enable us to work towards sustainable profitability.”
In connection with the offering, the Company will issue an aggregate of 6,415,000 shares of common stock and warrants to purchase up to an additional 3,207,500 shares of common stock. The securities will be sold in units at a price of $0.50 per unit, with each unit consisting of one share of common stock and a warrant to purchase 0.5 of a share of common stock. The warrants will have an exercise price of $0.70 per share and are exercisable for a five-year period commencing six months after issuance.
The closing of the offering is expected to occur on or about February 6, 2012, subject to customary closing conditions, at which time the Company will receive the cash proceeds and deliver the securities.
Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman & Renshaw Capital Group, Inc. (NASDAQ: RODM), acted as the exclusive placement agent for the offering.
The common stock and warrants are being offered by the Company pursuant to an effective registration statement on Form S-3 filed with the Securities and Exchange Commission (SEC). A prospectus supplement relating to the offering described above will be filed with the SEC.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities may only be offered by means of a prospectus. Copies of the prospectus supplement and related prospectus can be obtained directly from Rodman & Renshaw, LLC at placements@rodm.com or (212) 356-0549, or by mail at 1251 Avenue of the Americas, 20th Floor, New York, NY 10020, or from the SEC’s website at www.sec.gov.
About Jones Soda Co.
Headquartered in Seattle, Washington, Jones Soda Co. markets and distributes premium beverages under the Jones Soda, Jones Pure Cane Soda® and WhoopAss Energy Drink® brands and sells through its distribution network in markets primarily across North America. A leader in the premium soda category, Jones is known for its variety of flavors and innovative labeling technique that incorporates always-changing photos sent in from its consumers. Jones Soda is sold through traditional beverage retailers.