|
|
 | | | |
- close
- close
- close
- close
REEDS INC 8-K 2010 EXHIBIT
99.1
Reed’s,
Inc. Allows Jones Soda to Pursue Alternative Options
LOS ANGELES, CA -- (Marketwire – March
22) - Reed's, Inc. (NASDAQ: REED), maker of the top-selling sodas in
natural food stores nationwide, announced today that Jones Soda, Inc.
(NASDAQ: JSDA) has received an unsolicited offer by
a third party and has terminated the exclusivity provision of the Letter of
Intent (LOI) signed with Reed’s, Inc. on March 9, 2010.
As stated
in the Letter of Intent, Reed’s, Inc. had come to mutual terms with Jones to
acquire the company for approximately $9.8 million in cash and
stock. On March 19th,
2010, Jones informed Reed’s that it received an unsolicited proposal that it
would like to pursue while continuing to have discussions with Reed’s,
Inc.
Mr. Chris
Reed, Founder, Chairman and CEO of Reed’s, Inc., stated, “Jones management has a
fiduciary responsibility to its shareholders to consider any offers to buy the
company and we respect that. As of yet, we have not seen the terms of the new
offer. However, I would like to reiterate that our offer is based mostly on
stock, which has not yet reflected the value of the post merger company. The
post merger Reed’s, Inc. would be worth more than the two companies alone due to
the significant cost savings associated with the consolidation of operations.
While both companies have struggled with profitability over the past few years,
the combined entity would most probably not. Reed’s, Inc. should be profitable
in 2010 even without this merger.”
Mr. Reed
concluded, “The merger with Jones is not a necessity for Reed’s, as our business
is healthy and picking up momentum on all fronts. We reiterate our
guidance for double digit growth in 2010 and we will continue to look for other
opportunities for synergistic acquisitions in the course of building our
business.”
About
Reed's, Inc.
Reed's,
Inc. makes the top selling sodas in natural food markets nationwide and is
currently selling in 10,500 supermarkets in natural foods and mainstream. Its
six award-winning non-alcoholic Ginger Brews are unique in the beverage
industry, being brewed, not manufactured and using fresh ginger, spices and
fruits in a brewing process that predates commercial soft drinks.
In
addition, the Company owns the top selling root beer line in natural foods, the
Virgil's Root Beer product line, and the top selling cola line in natural foods,
the China Cola product line. Recently, Reed's added the Sonoma Sparkler brands
to its line, a celebration drink with an established customer base. Other
product lines include: Reed's Ginger Candies and Reed's Ginger Ice
Creams.
Reed's
products are sold through specialty gourmet and natural food stores, mainstream
supermarket chains, retail stores and restaurants nationwide, and in Canada. For
more information about Reed's, please visit the company's website at: http://www.reedsgingerbrew.com or call
800-99-REEDS.
Follow
Reed's on Twitter at: http://www.twitter.com/reedsgingerbrew
Reed's
Facebook Fan Page at: http://www.facebook.com/pages/Reeds-Ginger-Brew-and-Virgils-Natural-Sodas/57143529039?ref=nf
Subscribe
to Reed's RSS feed at: http://www.irthcommunications.com/REED_rss.xml
More
information can be found at: http://www.irthcommunications.com/clients_REED.php
SAFE
HARBOR STATEMENT
Some
portions of this press release, particularly those describing Reed's goals and
strategies, contain "forward-looking statements." These forward-looking
statements can generally be identified as such because the context of the
statement will include words, such as "expects," "should," "believes,"
"anticipates" or words of similar import. Similarly, statements that describe
future plans, objectives or goals are also forward-looking statements. For
example, as described in this press release, Reed’s has made an offer to
purchase Jones, but the offer is subject to negotiation, on a non-exclusive
basis, and the transaction may not move forward and the acquisition may not be
completed, or may be completed on other terms. While Reed's is
working to achieve its goals and strategies, actual results could differ
materially from those projected in the forward-looking statements as a result of
a number of risks and uncertainties. These risks and uncertainties include
difficulty in marketing its products and services, maintaining and protecting
brand recognition, the need for significant capital, dependence on third party
distributors, dependence on third party brewers, increasing costs of fuel and
freight, protection of intellectual property, competition and other factors, any
of which could have an adverse effect on the business plans of Reed's, its
reputation in the industry or its expected financial return from operations and
results of operations. In light of significant risks and uncertainties inherent
in forward-looking statements included herein, the inclusion of such statements
should not be regarded as a representation by Reed's that they will achieve such
forward-looking statements. For further details and a discussion of these and
other risks and uncertainties, please see our most recent reports on Form 10-K
and Form 10-Q, as filed with the Securities and Exchange Commission, as they may
be amended from time to time. Reed's undertakes no obligation to publicly update
any forward-looking statement, whether as a result of new information, future
events, or otherwise.
Source:
Reed’s, Inc.
Contact
IRTH
Communications, LLC
Andrew W.
Haag
Managing
Partner
888-825-6456
reed@irthcommunications.com
http://www.irthcommunications.com
http://www.twitter.com/irthcomm
|
| |||||||
