By Devika Patel
Knoxville, Tenn., June 14 - Jones Soda Co. said it negotiated a $10 million two-year equity financing agreement with Glengrove Small Cap Value, Ltd.
The company will determine the timing, dollar amount and floor price per share for any draws under this facility. When and if Jones Soda elects to use the facility, it 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. It may sell up to 5,228,893 shares, or one share less than 20% of its outstanding shares.
The company may present Glengrove with up to 24 drawdown notices over the term of the agreement, with each drawdown limited to 2.5% of the company's market capitalization at the time. Only one drawdown notice may be issued during any 10-consecutive-trading-day drawdown period and a minimum of five trading days is required between each drawdown period.
The per share purchase price will equal the daily volume weighted average price of the common stock on each date during the drawdown period, less a discount of 6%. If the daily volume weighted average price of the stock falls below the threshold price on any trading day during a drawdown period, Glengrove is not required to purchase the pro-rata portion of shares of common stock allocated to that day.
Reedland Capital Partners was the agent.
Seattle-based Jones Soda manufactures and bottles soda.
| Issuer: | Jones Soda Co.
|
| Issue: | Equity financing agreement
|
| Amount: | $10 million
|
| Tenor: | Two years
|
| Price: | 6% discount
|
| Warrants: | No
|
| Agent: | Reedland Capital Partners
|
| Investor: | Glengrove Small Cap Value, Ltd.
|
| Settlement date: | June 14
|
| Stock symbol: | Nasdaq: JSDA
|
| Stock price: | $1.77 at close June 11
|
| Market capitalization: | $48.1 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
