Soda maker Reed's Inc. has signed a letter of intent to buy Jones Soda Inc. for about $9.8 million in cash and stock, the Associated Press reports. Under terms of the deal, Reed's would give Jones shareholders 0.17 shares of Reed's stock and 10 cents in cash per Jones share they own. That works out to about 37 cents per share, based on Reed's closing price Monday of $1.58, for an aggregate price of about $9.8 million. That's a 56 percent discount to Jones' closing price of 84 cents per share on Monday. Both companies said the deal will let the two companies have a bigger size and scale and cut costs. Reed's, based in Los Angeles, makes Ginger Brews sodas sold at natural food markets and supermarkets. Jones Soda makes a variety of drinks such as Jones Organics and Jones Naturals. Jones Soda, based in Seattle, has seen sales slump as consumers trade down to cheaper drink options. The company has worked with North Point Advisors since February 2009 to review strategic alternatives.