Editor's note: This story has been update to reflect clarification from Jones Soda Co. that it will retain its hemp-derived THC product line.

Jones Soda Co. has sold its cannabis business, including all cannabis-specific assets under the Mary Jones brand, to MJ Reg Disrupters LLC for $3 million.

The transaction is part of Jones' previously announced strategy to streamline operations and focus on its core soda offerings, modern functional beverages and emerging adult beverage category, including its line of hemp-derived Mary Jones sodas, shooters and gummies.

"Although we made the strategic decision to sell our marijuana-derived THC business, we are excited about the opportunity to increase our focus on and continue to expand our distribution of our Mary Jones HD9 products, which have been some of our fastest growing product categories," said Scott Harvey, Jones Sodas' president and CEO. "I believe the divestiture of our marijuana-derived THC business will enable us to sharpen our strategic priorities and accelerate investment in our core soda, functional beverage, and adult beverage categories, including our hemp-infused THC segment. This is a segment were we already have significant retail distribution and strong distributor networks comprised of over 26 of the top DSD distributors in the country."

Under a purchase agreement, MJ Reg paid $489,399 in cash on the June 19 closing date, in addition to taking on a $2,510,601 promissory note.  

As part of the transaction, Jones and MJ Reg entered into a multi-year, exclusive and non-transferrable trademark licensing under which MJ Reg will have the right to use the Mary Jones brand name in any consumable product containing an emulsion derived from the marijuana plant with THC, in exchange for an annual licensing fee of $150,000 on June 19, 2026, and $225,000 on each subsequent anniversary.  Assuming a 10-year term, the total amounts due to Jones Soda Co. would be $2,175,000.

"We are excited about the opportunity to build on the Mary Jones legacy and bring it to more consumers in the evolving cannabis beverage market,” said Joe Oblas, director of MJ Reg Disrupters LLC. “Jones Soda created a unique and high-quality product, and we are committed to continuing its innovation and reach."