HeavenlyRx buys into Jones Soda, creates foothold on infused beverages

HeavenlyRx Ltd., a subsidiary of SOL Global, announced a significant investment in Jones Soda Co. (OTCQB: JSDA), one of the nation’s most recognizable craft soda-makers.

HeavenlyRx has acquired from Jones Soda 15 million common shares, representing approximately 25% of the total issued and outstanding common shares of Jones Soda for a $9 million investment.

As part of its investment, HeavenlyRx was issued a warrant to acquire 15 million common shares that, if exercised, would increase HeavenlyRx’s common share ownership of Jones Soda to approximately 39%.

HeavenlyRx’s investment gives option to increase to 51% 

   

A breakdown of the agreement was detailed in part of the release,”prior to the exercise in full of the warrant, HeavenlyRx may purchase Jones Soda shares in the open market of up to 50 percent of the number of shares purchased upon partial exercise of the warrant.  The contractual restrictions on HeavenlyRx’s  purchase of additional shares of Jones Soda terminate upon the earlier of full exercise of the warrant or two years after the issuance of the warrant (or earlier with approval of Jones Soda’s board of directors), at which time HeavenlyRx may make additional purchases of shares, whether in the open market or otherwise, to acquire a majority controlling interest in Jones Soda.”

As part of the purchase Heavenly RX designated CEO Paul Norman, to the board of directors for Jones Soda.

Paul Norman, CEO of HeavenlyRx, stated “I and the rest of the HeavenlyRx team are fully committed to investing in accelerating the growth of the existing core business of the iconic Jones Soda brand as well as developing a range of CBD-infused products.  Jones Soda is in an ideal position to become a market leader in cannabinoid wellness beverages.  The Jones Soda leadership has built an incredible brand, and we’re excited to help them enter this new growth phase.”