Jammin Java Corp., d/b/a Marley Coffee (OTCQB:JAMN)
(www.marleycoffee.com) ("Marley Coffee"), the sustainably grown,
ethically farmed and artisan-roasted gourmet coffee company, has
entered into a strategic investment transaction with Mother Parkers
Tea & Coffee, Inc., for a total of up to $8.25 million in
funding.
The family-owned, Ontario, Canada-based Mother Parkers is the
largest independent roaster in North America. The company produces
Marley Coffee in its innovative RealCup™ single-serve capsules,
which are designed for use with K-Cup® compatible brewers and
feature a patented non-woven filter for superior taste in the cup.
Mother Parkers is also Marley Coffee's Canadian food service
provider and brings Marley Coffee to market into key retail
accounts across Canada.
Under the terms of the agreement, Mother Parkers will acquire
7,333,529 units at $0.3409 per unit (each consisting of one share
of common stock and one warrant to purchase one share of common
stock) for $2.5 million, which represents an approximately seven
percent interest (before the exercise of the warrants) in Marley
Coffee. Marley Coffee may receive up to an additional $3.75 million
upon the exercise of warrants (sold as part of the units). In
addition, Mother Parkers will provide Marley Coffee $2 million of
marketing and brand promotion funding.
Marley Coffee Chairman and Founder Rohan Marley said, "I'm very
proud of how much growth in grocery store product placement our
company has seen in the last 18 months. The next key phase of our
expansion is to consistently reinforce the quality of our brand to
consumers and help increase product turn. The lion's share of this
cash infusion from Mother Parkers will go toward the latter, and
unlike previous investments we have had from previous investors,
this is the most strategic investment to date because it aligns
both companies' long-term interests and provides a vehicle for both
corporate and shareholder growth."
Mother Parkers also intends to provide an investment of $2
million in marketing funds toward the Marley Coffee brand over the
course of the next two years. Some of these funds have already been
deployed in initiatives such as the Marley Coffee partnership with
the Colorado Rockies baseball team, and toward listing fees in the
Canadian retail grocery market. The remainder of the funding is
expected to be utilized in various innovative marketing strategies
to promote the brand in the United States and Canada in an effort
to drive consumer sales.
"Marley Coffee is a powerful brand and is a great addition to
our company's portfolio as a premium offering for our customers
throughout North America," said Michael Higgins, Co-CEO of Mother
Parkers, who continued, "Our multi-tiered investment reflects our
confidence in Marley Coffee and its management team. We look
forward to a collaboration that will benefit both companies, as
well as consumers who want great quality and freedom of choice in
their coffee experience." As a result of the transaction, Mother
Parkers will also receive a seat on the to-be-formed Board of
Advisors of Marley Coffee to help shape the company's growth.
Additionally, Rohan Marley will be appointed lead ambassador for
WaterWise, Mother Parkers' leading environmental sustainability
project. (http://www.waterwisecoffee.com/).
WaterWise seeks to improve the living conditions and water
filtration systems for those living in the Sidamo area of Ethiopia,
a coffee growing region from which Marley Coffee sources its
high-quality coffee beans. Marley Coffee, in conjunction with
Mother Parkers, will donate $0.01 to WaterWise for every Marley
Coffee RealCup capsule sold over the next three years, which adds
to Mother Parkers' ongoing investment of more than $1 million.
"Water is a fundamental crisis issue of the 21st century that
affects many people in Ethiopia, a place with significant ties to
myself and the Marley Family," said Mr. Marley. "Ethiopia is the
birthplace of coffee, Rastafarian culture and humanity itself, and
we are proud to provide a better quality of life for the people who
supply our coffee through the WaterWise project. When our customers
purchase a 12-pack of RealCups at their local grocery store, they
will know that $0.12 will be going directly to WaterWise."
The WaterWise Project bolsters Marley Coffee and Mother Parkers'
numerous environmental initiatives, including the development of
Mother Parkers' recently launched EcoCup™, a breakthrough
recyclable capsule that is compatible with all K-Cup brewers.
EcoCup™ has launched in early April with loose leaf tea and is
expected to be available with Marley Coffee in 2015.
Brent Toevs, CEO of Marley Coffee, said, "We could have gone
with other single-serve platforms, but we decided to expand our
relationship with Mother Parkers because we believe in the
partnership, their technology and the quality of the coffee that
comes from the RealCup™ system. With Mother Parkers, we won't get
lost in the shuffle of other brands, and we are more confident in
our path to becoming the premium brand leader in the marketplace."
He added, "We support an Open Brew philosophy, meaning, an open
single-serve format that gives customers better options in the
marketplace in terms of price and quality. We're proud to have a
partner who truly believes in our brand, standards of quality, and
is continuously pushing the limits of what can be achieved in the
single-serve format."
About the Transaction
The units each were priced at $0.3409 per unit, and reflective
of the Volume-Weighted Average Price (VWAP) of the 50 days
preceding the date the parties first began discussions regarding an
investment (March 7, 2014). The warrants provide Mother Parkers the
option to obtain an additional 7,333,529 shares of common stock at
an exercise price of $0.51135 per share (150 percent of the unit
price) for three years. Marley Coffee also provided Mother Parkers
certain first right of refusal rights to participate up to 10
percent in equity fundings Marley Coffee may undertake (subject to
certain exceptions) for two years following the closing. The terms
of the transaction and the warrants are described in greater detail
in the Company's Current Report on Form 8-K, filed with the
Securities and Exchange Commission on April 29, 2014.
About Marley Coffee
Marley Coffee (corporate name Jammin Java Corp.) is a US-based
company that provides premium, artisan roasted coffee to the
grocery, retail, online, service, hospitality, office coffee
service and big box store industry. Under its exclusive licensing
agreement with 56 Hope Road, the company continues to develop its
coffee lines under the Marley Coffee brand. Marley Coffee is a
fully reporting company quoted on the OTCQB under the symbol
JAMN. Learn more at www.MarleyCoffee.com, visit the
corporate website at www.JamminJavaCorp.com, join us on
Facebook at http://www.facebook.com/MarleyCoffee, and follow
us on Twitter at http://twitter.com/marleycoffee.
About Mother Parkers Tea & Coffee and RealCup™ Brand
Single-Serve Capsules:
RealCup™ single-serve capsules were developed by Mother Parkers
Tea & Coffee, one of the largest coffee and tea manufacturers
in North America. The company combines state-of-the-art technology
and new product innovation with more than 100 years of quality and
service excellence to deliver an exceptional beverage experience in
mainstream and specialty coffee, tea, and complementary beverages.
A leader in the independent single-serve beverage industry, the
RealCup™ brand strives to bring sustainability, choice, value and
quality to the consumer, both through partner brands and through
flexible licensing agreements. RealCup™ capsules are designed for
use with K-Cup® compatible single-serve brewers.
www.mother-parkers.com
www.realcup.com
*RealCup™ products, Mother Parkers Tea & Coffee and Marley
Coffee are not affiliated with K-Cup® or Keurig Inc. K-Cup® and
Keurig® are registered trademarks of Keurig Green Mountain.
Forward-Looking Statement
This Press Release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended (the "Acts"). In particular, the words "believe,"
"may," "could," "should," "expect," "anticipate," "estimate,"
"project," "propose," "plan," "intend," and similar conditional
words and expressions are intended to identify forward-looking
statements and are subject to the safe harbor created by these
Acts. Any statements made in this news release about an
action, event or development, are forward-looking
statements. Such statements are based upon assumptions that in
the future may prove not to have been accurate and are subject to
significant risks and uncertainties. Such statements are
subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of the company. These risks and
others are included from time to time in documents we file with the
Securities and Exchange Commission ("SEC"), including but not
limited to, our Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown
or unpredictable factors also could have material adverse effects
on our future results. Accordingly, you should not place undue
reliance on these forward-looking statements. Although the company
believes that the expectations reflected in the forward-looking
statements are reasonable, it can give no assurance that its
forward-looking statements will prove to be correct. Investors are
cautioned that any forward-looking statements are not guarantees of
future performance and actual results or developments may differ
materially from those projected. The forward-looking statements in
this press release are made as of the date hereof. The company
takes no obligation to update or correct its own forward-looking
statements, except as required by law or those prepared by third
parties that are not paid by the company. The company's SEC filings
are available at http://www.sec.gov.
CONTACT: Dian Griesel Int'l.
212-825-3210
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