SEATTLE and TORONTO — Jones Soda Co. will speed its move toward a line of CBD-infused beverages on the heels of a major investment by a hemp and CBD company.
Heavenly Rx on July 11 acquired from Jones Soda 15 million common shares, giving the CBD company about 25% ownership of Jones Soda. Subsequently, Heavenly Rx CEO Paul Norman was appointed to the Jones Soda board of directors.
Heavenly Rx also has the option through warrants and other open market buys to acquire up to 51% of the soda company.
The capital infusion will be used to accelerate the growth of Jones Soda's existing core business, as well as developing a range of CBD-infused products, according to the company.
“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, Seattle. “We believe that Heavenly Rx 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.”
Norman has been in his role as CEO of Toronto-based Heavenly Rx for just over a month now and is moving quickly to build out the portfolio of brands under its umbrella, Heavenly Rx said.
“When I look at CBD and the potential and look at the data of consumers in the space, 80% of the people who have tried CBD believe in the product, and 80% of hemp CBD consumers consume it at least once per week. Forty-one percent are now using it on a daily basis,” Norman said. “This phenomena, this business and category is going to explode. It's a massive consumer opportunity, and this category will grow four times over in the next five years, and will soon grow to more than a 20 billion industry.”