Vending

Jones Soda to expand into cannabis beverages, edibles

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July 15, 2021

Jones Soda Co., the craft soda provider, plans to expand into the production and sale of cannabis-containing beverages, edibles and related products and has issued a $2 million unsecured debenture to SOL Global Investment Corp. to use the proceeds for the business expansion, according to a press release.

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," Mark Murray, president and CEO of Jones, said in the release.

Jones has entered into a non-binding term sheet with SOL and Pinestar Gold Inc., a Canadian reporting issuer.

Jones intends to acquire all of the outstanding common shares of Pinestar and warrants exercisable into common shares of Pinestar in exchange for an aggregate of 4 million shares of Jones common stock and 1,674,808 warrants exercisable into Jones shares as part of a statutory plan of arrangement.