As of last week, one-fourth of Jones Soda is now owned by Heavenly Rx, a subsidiary of cannabis investment firm SOL Global Investments. As a part of the deal, SOL invested a whopping $9 million to purchase 15 million shares of Jones Soda, giving the Toronto-based firm a 25 percent ownership stake in the company. On top of that, Heavenly Rx/SOL managed to work a warrant into the deal, allowing them to purchase an additional 20 percent stake. SOL Global itself bought 10 percent of the soda company earlier this year.
As revealed in a press release announcing the deal, Jones plans to use the new cash infusion to research and develop sodas and beverages infused with cannabidiol, or CBD — the non-psychoactive compound from cannabis plants that's become a trendy go-to solution to remedy pain, inflammation, and anxiety, amongst other health issues.
In addition to developing the soda line's new CBD-based offerings, the company promises to use it in part to help tweak their current offerings and build the overall brand up with refreshed marketing efforts.
“Completing this funding with a strategic partner that has vast experience in the retail industry is a significant step forward for Jones Soda,” Jones Soda chief Jennifer Cue said in a statement. “We believe that HeavenlyRx seeking out the Jones brand is a testament to our unique beverages that resonate well with consumers, and we expect their involvement will help accelerate future C.B.D.-infused beverage brand development."
"We also believe this partnership will further bolster our product portfolio and significantly expand the network in which we sell our products, while maintaining the independent, rebellious and fun brand image that customers have come to love.”
HeavenlyRX also got two seats on the board at Jones, one of which will go to executive Paul Norman, a former 30-year chief at Kellogg Co.
"It's a fabulous brand," Norman told CNN Business. "It's rebellious. It's got a great history behind it."0comments
It has yet to been what timetable Jones has on bringing CBD-infused sodas to market or what regulatory hurdles the company would have to clear with the United States Food and Drug Administration.
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