Jones Soda Co. announced that on or about Feb. 1, 2011, it expected to close the sale of 1,596,773 shares of its common stock to Glengrove Small Cap Value, Ltd. for gross proceeds of approximately $2.3 million, or approximately $1.41 per share.
Prior to the current draw down, Jones Soda sold an aggregate of 3,632,120 shares under the equity financing facility, for which the company received aggregate gross proceeds of approximately $4.1 million. With the closing of the current draw down, which is subject to satisfaction of customary closing conditions, Jones Soda will have issued the maximum aggregate number of shares available for sale under the equity financing facility and, accordingly, the facility by its terms automatically will terminate. Jones Soda intends to use the net proceeds from the planned sale for targeted funding of new marketing programs, to secure and grow larger distributor and national retail accounts, and for working capital and other general corporate purposes.
"We are pleased to have completed the use of our equity line facility," stated Bill Meissner, Jones Soda's chief executive officer in a prepared statement. "This financing tool will terminate with us having raised total capital of nearly $6.4 million. The facility was an important financing option, allowing us to raise the capital we need to go forward through 2011 and support strategic growth which we believe will result in a significant benefit to our shareholders."