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Big Red interested in acquiring Jones Soda
Jones Soda Co, a leader in the premium soda category and known for its unique branding and innovative marketing, has announced that it has received written indication of interest from US soda maker Big Red Holdings Corporation in acquiring the company for a cash purchase price of $0.30 per share of common stock.
The indication of interest is subject to various contingencies, including satisfactory completion of due diligence by Big Red.
Jones Soda retained North Point Advisors in February 2009 to assist in evaluating the company’s strategic alternatives. Since that time, the company has reviewed a broad range of strategic alternatives to enhance shareholder value, including the continued execution of the company’s business plan, potential fundraising opportunities, strategic partnerships and distribution arrangements, and potential combinations with strategic and financial investors.
The Board of Directors intends to conduct a thorough evaluation of Big Red’s indication of interest and all other strategic alternatives. The company may negotiate with Big Red and also intends to pursue all available avenues to enhance shareholder value.
Jones Soda president and chief executive officer Joth Ricci commented: “We have strived over the last 12 months to streamline our business by reducing costs and focusing on our core glass bottle business. We have achieved improved year over year bottom-line results on lower case volumes, and we believe in the strength of the Jones Soda brand. However, adverse economic conditions have continued to negatively impact our liquidity and financial condition and caused us to explore strategic alternatives in an effort to enhance shareholder value. While the Board conducts this process, we will continue to focus on executing our strategy.”
Source: Jones Soda Co
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