Late Thursday, Heavenly Rx, a hemp portfolio company of cannabis investment firm SOL Global Investments, invested $9 million to buy 15 million shares of Jones Soda, bringing its ownership stake in the Seattle soda company to 25%. The infusion is a welcome sum for Jones, which has been hit by the shift away from soda and other sugary beverages.
As part of the arrangement, Heavenly Rx received a warrant to acquire an additional 20% stake and was granted the right to acquire stock in the open market to bring its share up to 51%. Heavenly Rx’s move follows an investment made earlier this year by SOL Global, which purchased a 10% stake in Jones.
Jones is using the money to develop beverages featuring CBD, the non-psychoactive compound that’s been touted as a miracle cure for everything from skin rashes to epilepsy.
The Heavenly Rx investment will also help fund the creation, marketing and distribution of Jones’ existing core offerings of bottled beverages and fountain drinks, as well as building out the brand, said Heavenly Rx CEO Paul Norman, who joined the Toronto firm last month after a 30-year career at Kellogg Company.
“It’s a good product extension for the Jones brand to drive growth,” Jones CEO Jennifer Cue told CNN Business.