Natural soda maker Reed’s Inc. said Wednesday that it has given Jones Soda, a Seattle acquisition target, the right to pursue another offer.
The Los Angeles company signed a letter of intent on March 9 to buy Jones Soda for $9.8 million. Jones, a maker of both sodas and energy drinks, would give Reed’s, which specializes in ginger ales, a broader product line.
However, on March 19, Jones informed Reed’s it received an unsolicited proposal that it would like to pursue while continuing to have discussions with Reed’s. The bidder was not disclosed.
Reed’s Founder and Chairman Chris Reed said in a statement that it was still interested in acquiring with Jones, but that the merger was not a necessity for his company because “the business is healthy and picking up momentum.” He expects Reed’s to reach profitability later this year, regardless of the merger.
“Jones management has a fiduciary responsibility to its shareholders to consider any offers to buy the company and we respect that,” Reed stated. “As of yet, we have not seen the terms of the new offer.”
Shares of Reed’s rose 7 cents, or 4 percent, to close at $1.72 on the Nasdaq.
Shares of Jones soared 36 cents, or 19 percent, to close at 71 cents per share, also on the Nasdaq.
