VANCOUVER, BC. — Simply Better Brands Corp. (SBBC), which operates in the emerging plant-based and holistic wellness consumer product categories, has terminated its agreement to acquire Seattle-based Jones Soda Co., a maker of premium craft beverages, citing “current market conditions.”
“We are disappointed that due to current market conditions we are unable to move forward with our intended transaction at this time,” said Kathy Casey, chief executive officer of SBBC. “The Jones Soda brand is one we felt confident would add tremendous value to our existing platform and ultimately be accretive to shareholder value. We wish Jones management and their board much success in their future.”
Mark Murray, CEO of Jones Soda, added, “Due to the decline in current market conditions, we regrettably are unable to continue with the proposed transaction with SBBC. We are certain that Simply Better Brands and Jones will continue to find successful business opportunities in the future, despite this shift in direction for both companies.”
In mid-April SBBC announced it would acquire all of the issued and outstanding common shares of Jones at a deemed value of 75¢ per share, payable in fully paid and non-assessable common shares of SBBC based on a price per share equal to $3.65. In addition, SBBC agreed to assume all of Jones Soda’s outstanding debt. The aggregate value of the transaction was approximately $98.9 million, the companies said.
The combined company was expected to increase shareholder value through operational synergies and accelerated sales growth in three areas: food and beverage (Jones Soda and Trubar); plant-based wellness — CBD and THC (PureKana, Seventh Sense, Herve, Mirage and Mary Jones); and health and beauty (No BS Skincare).SBBC’s businesses include Tru Brands, Inc., which was acquired in August 2021. Tru Brands is a health and wellness brand specializing in nutritious snacks for women. Founded in 2018, Tru Brands offers a line of dessert-inspired protein bars made with plant-based ingredients such as cassava, cacao and brown rice protein.