Jones Soda Co. has completed a $9 million strategic financing with HeavenlyRx Ltd., a portfolio company of SOL Global Investments focused on acquiring unique brands to sell CBD and hemp-infused products.
 
Under the terms of the agreement, HeavenlyRx purchased 15 million shares of Jones Soda at a price of $0.60 per share for a total of $9 million. The company also issued HeavenlyRx a warrant with a 12-month term to purchase up to an additional 15 million shares at an exercise price of $0.78 per share, which provides Jones Soda the potential for an additional $11.7 million in capital.
 
Jones Soda plans to utilize the capital 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 CBD-infused beverages. In addition to providing capital for various product initiatives, HeavenlyRx will leverage its relationships with several thousand QSR locations, increasing the number of storefronts where Jones products are sold and bringing the Jones brand to more people across the country.
 
“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, CEO of Jones Soda. “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 CBD-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.”
 
As part of the strategic investment, HeavenlyRx has the right to designate two members of Jones Soda’s board of directors, which the company expects to occur in the coming weeks.
 
HeavenlyRx has recommended industry veteran Paul Norman as one of the board designees. Norman is currently chairman and CEO of HeavenlyRx, where he is focused on developing a long-term strategic direction and growing the company’s brand portfolio. Previously, Norman spent over 30 years at the Kellogg Company, and most recently served as president of the company’s North American operations. During his multi-decade career at Kellogg, Norman led various transformation efforts through strategic portfolio innovation and management that resulted in long-term, profitable growth.
 
Jennifer continued: “It has continuously been our goal to expand our brand’s presence and bring our unique array of products to a larger customer base. We anticipate this strategic partnership will deliver the necessary capital and human resources to further grow our brand and meet those goals.”