Jamba (JMBA) Announces Lower Preferred Stock Dividend; Ownership Conversion
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Jamba, Inc. (Nasdaq: JMBA) 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 guidance.”
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.
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“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 guidance.”
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.
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