SEATTLE — Heavenly Rx, a portfolio company of cannabis investment firm SOL Global Investments, has acquired 15 million shares of Jones Soda Co. for $9 million. The transaction boosts Heavenly Rx’s ownership stake in the Seattle-based soda maker to 25%.
Heavenly Rx also has been given a warrant to acquire an additional 15 million shares at an exercise price of 78c per share, which would give it an additional 20% stake in the company. And with the option to purchase stock in the open market Heavenly Rx could potentially boost its share in Jones Soda to 51%.
Jones Soda said it plans to use the capital secured from Heavenly Rx to “further grow and enhance its existing beverage portfolio, along with pursuing the development of new extensions to Jones products, including the potential commercialization of C.B.D.-infused beverages.”
Jones Soda said Heavenly Rx also has agreed to leverage its relationships with several thousand quick-service restaurant locations to help get Jones products in front of more consumers.
“Completing this funding with a strategic partner that has vast experience in the retail industry is a significant step forward for Jones Soda,” said Jennifer Cue, chief executive officer of Jones Soda. “We believe that Heavenly Rx 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.”
Under terms of the agreement, Heavenly Rx has received the right to designate two members of Jones’ board of directors. One of the board designees is Paul Norman, current chairman and c.e.o. of Heavenly Rx. Prior to joining Heavenly RX Mr. Norman spent more than 30 years at Kellogg Co., most recently as president of the company’s North American operations.
Headquartered in Seattle, Jones Soda markets and distributes beverages under the Jones Soda and Lemoncocco brands. The company’s beverages are made with pure cane sugar and other ingredients and are known for packaging that incorporates ever-changing photos sent in from consumers. Jones Soda is sold across North America in glass bottles, cans and on fountain through traditional beverage outlets, restaurants and alternative accounts.