Jones Soda Co., known for its unconventional flavors and user-designed label artwork, has announced plans to use funds from a $2 million convertible debenture to develop and sell cannabis-containing beverages, edibles and other products.
The company has issued to SOL Global Investments Corp. an unsecured convertible debenture and has entered into a non-binding term sheet with Pinestar Gold Inc., a Canadian Reporting Issuer, and SOL. Jones intends to operate its planned cannabis operations through one or more subsidiaries that are separate from its craft beverage business.
“We believe that cannabis-infused beverages and edibles are a perfect fit for the iconic personality of the Jones brand, and that the proposed transactions will lay the groundwork for a strategic transformation of the company to an additional business line that we feel builds on our current business model,” said Mark Murray, president and CEO of Jones. ”We are also confident that SOL, along with certain large shareholders of Pinestar, will provide Jones with the knowledge, expertise and resources necessary to help us deliver on our growth plans within the cannabis sector.”
The proposed transactions outlined in the Term Sheet are subject to, among other conditions, due diligence by the parties, the negotiation and execution of a definitive agreement, approval of any applicable regulators, including any applicable securities exchanges, and approval by both the shareholders of Pinestar and the Supreme Court of British Columbia.
Headquartered in Seattle, Jones markets and distributes premium craft beverages under the Jones Soda and Lemoncocco brands. A leader in the premium craft soda category, Jones is made with cane sugar and other high-quality ingredients, and is known for packaging that incorporates ever-changing photos sent in from its consumers. Jones is sold across North America in glass bottles, cans and on fountain through traditional beverage outlets, restaurants and alternative accounts.