EMERYVILLE, Calif.--(BUSINESS WIRE)--Sep. 6, 2012--
Jamba, Inc. (NASDAQ: JMBA) today announced that Mistral Equity Partners,
who originally purchased 170,000 shares of the Company’s Series B-1
Preferred Stock in June of 2009 with its investment of $19.55 million at
the time, has reduced their outstanding preferred share count by 75,000
shares by a conversion of such shares into shares of common stock and a
sale of the common stock in the open market. This leaves Mistral Equity
Partners with a balance of 22,649 in convertible preferred shares As a
result, the Company will reduce its annual dividend expenses by
approximately $0.7 million.
“This share sale has allowed us to significantly reduce our dividend
payment as well as over-hang in the Company’s stock,” said James D.
White, Chairman, President and CEO of Jamba, Inc. “We would like to take
this opportunity to thank Mistral for their continued support and
The convertible preferred stock is subject to redemption rights 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. As a result of the reduction of preferred stock held by
Mistral, the Company expects to reduce its number of Board seats by at
least one, with one of the members appointed by Mistral to resign.
About Jamba, Inc.
Jamba, Inc. is a holding company which owns and franchises, on a global
basis, Jamba Juice stores through its wholly-owned subsidiary, Jamba
Juice Company is a leading restaurant retailer of better-for-you,
specialty beverage and food offerings, which include great tasting,
whole fruit smoothies, fresh squeezed juices and juice blends, teas, hot
oatmeal, breakfast wraps, sandwiches and mini-wraps, California
Flatbreads™, frozen yogurt, and a variety of baked goods and snacks.
Jamba-branded products for at-home enjoyment are also available through
select retailers across the nation and in Jamba outlets. As of July 3,
2012, there were 783 store locations globally, consisting of 305
Company-owned and operated stores (“Company Stores”) and 448
franchise-operated stores (“Franchise Stores”) in the United States and
30 international stores (“International Stores”). Fans of Jamba Juice
can find out more about Jamba Juice's locations as well as specific
offerings and promotions by visiting the Jamba Juice website at www.JambaJuice.com or
by contacting Jamba’s Guest Services team at 1-866-4R-FRUIT (473-7848).
This press release (including information incorporated or deemed
incorporated by reference herein) contains “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are those involving future events and
future results that are based on current expectations, estimates,
forecasts, and projections as well as the current beliefs and
assumptions of the Company’s management. Words such as “outlook”,
“believes”, “expects”, “appears”, “may”, “will”, “should”,
“anticipates”, or the negative thereof or comparable terminology, are
intended to identify such forward looking statements. Any statement that
is not a historical fact and any other estimates, projections, future
trends and the outcome of events that have not yet occurred, is a
forward-looking statement. Forward-looking statements are only
predictions and are subject to risks, uncertainties and assumptions that
are difficult to predict. Therefore actual results may differ materially
and adversely from those expressed in any forward-looking statements.
Factors that might cause or contribute to such differences include, but
are not limited to factors discussed under the section entitled “Risk
Factors” in the Company’s reports filed with the SEC. Many of such
factors relate to events and circumstances that are beyond the Company’s
control. You should not place undue reliance on forward-looking
statements. The Company does not assume any obligation to update the
information contained in this press release.
Source: Jamba, Inc.
For Jamba, Inc
Don Duffy, ICR