Funding is a Strong Vote of Confidence in our Business Model, Eliminates Long Term Debt and Provides Additional Capital for BLEND Plan
EMERYVILLE, Calif.--(BUSINESS WIRE)--Jun. 1, 2009--
Jamba, Inc. (NASDAQ: JMBA; NASDAQ:JMBAU; NASDAQ:JMBAW) today announced
that it has entered into an agreement for the sale of $35.0 million in
convertible preferred stock. The funding was led by a $19.55 million
investment by Mistral Equity Partners, a private equity firm, with the
remaining $15.45 million investment made by a company controlled by the
Serruya family, a successful entrepreneurial Canadian-based family. Upon
completion, the proceeds from the stock sale will be used to repay the
Company’s senior term note and to provide additional working capital as
the Company executes its “BLEND plan—Building a Customer First Service
Culture, Building a Food Capability, Licensing and Consumer Products
Platform, Improvement in our Expense Structure and Accelerating
Franchising and Non-Traditional Store Development.”
"We are pleased to announce this financing which will provide us greater
financial flexibility to execute our BLEND plan, which was launched in
January and serves as the blueprint for our strategic priorities. We
have made significant progress in delivering on several of the plan's
key elements, including new licensing alliances, ongoing collaboration
with Nestlé, an expanded refranchising initiative, and an improved cost
structure and disciplined expense management. This financing will play a
key role in helping us to achieve our long term strategic objectives,"
said James D. White, President and CEO of Jamba, Inc.
“We are very excited about Jamba and the potential growth opportunities
available to the Company as it extends the brand through licensing and
franchising opportunities. We believe that Jamba’s management team can
develop the brand into a significant lifestyle brand within a number of
consumer categories. We also believe the company’s BLEND plan, combined
with Mistral’s investment, provides the company a strong foundation for
future growth and long-term value creation for its shareholders,”
commented Andrew Heyer, Managing Partner of Mistral Equity Partners. Mr.
Heyer also sits on the board and was a founding shareholder of the Hain
Celestial Group, the foremost natural and organic foods company in the
Michael Serruya added, “We are thrilled to participate in this
investment, and we are enthusiastic about Jamba’s progress in executing
its BLEND plan. We are also pleased to provide our experience in
franchise operations to Jamba’s management team at the Board level.” Mr.
Serruya is the Chairman, President, and CEO of CoolBrands International.
The convertible preferred stock matures 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. Mistral
Equity Partners and the Serruya family also have the right to appoint
three members to Jamba’s board of directors. Please refer to the
Company’s Form 8-K to be filed with the Securities and Exchange
Commission for the complete terms of the convertible preferred stock.
The Company will host a conference call to discuss today’s announcement
at 9:15am ET today, Monday, June 1, 2009. The call can be accessed live
over the phone by dialing (888) 549-7880 or for international callers by
dialing (480) 629-9867. A replay will be available at 12:00 p.m. ET and
can be accessed by dialing (800) 406-7325 or (303) 590-3030 for
international callers. The pin number for the live call and replay is
4090444. The replay will be available until June 8, 2009. The call will
be webcast live from the Company’s website at www.jambajuice.com
under the investor relations section.
About Mistral Equity Partners
Mistral Equity Partners is a private equity firm comprised of highly
experienced investment professionals and seasoned industry executives.
The firm specializes in the consumer, retail, and consumer focused media
sectors, and is especially attracted to businesses that are supported by
strong demographic trends and fundamental changes in consumer
preferences. Mistral’s principals have a long history of working
together and identifying successful investment opportunities with these
About Jamba, Inc.
Jamba, Inc. (Nasdaq: JMBA) (Nasdaq: JMBAU) (Nasdaq: JMBAW) is a holding
company and through its wholly-owned subsidiary, Jamba Juice Company,
owns and franchises JAMBA JUICE® stores. Founded in 1990, Jamba
Juice is a leading restaurant retailer of healthy lifestyle food and
beverage offerings, including great tasting fruit smoothies, juices,
teas, hot oatmeal made with organic, steel cut oats, and baked goods. As
of April 21, 2009, JAMBA JUICE had 732 locations consisting of 499
company- owned and operated stores and 233 franchise stores. For the
nearest location or a complete menu, visit the JAMBA JUICE website at www.jambajuice.com
or call 1-866-4R-FRUIT.
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 projects as well as the current beliefs and assumptions
of our 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,
including 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, those
discussed under the section entitled “Risk Factors” in our reports filed
with the SEC. Many of such factors relate to events and circumstances
that are beyond our 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.
Don Duffy, 203-682-8200