CBD Company Purchases Large Stake in Jones Soda Company
We can only hope it’s to combine cannabis with their classic flavors.
n case you missed it, CBD is blowing up. It’s showing up as a centerpiece in everything from Kim Kardashian’s ultra boutique CBD-themed baby shower to experimental CBD burgers at fast food giants like Carls, Jr.
At the same time, CBD is also starting to show up at the smaller scale, local level. Specifically, in many parts of the country, CBD and various CBD-infused products are making an appearance at coffee shops, cafes, and more.
Now, CBD sodas could be the next big thing. In a move that turns on its head what is becoming the standard order of operation in cannabis-related business ventures, a CBD company just purchased a massive share in the well known soda company Jones Soda.
Heavenly Rx Buys Shares in Jones Soda
As reported today by CNN Business, Heavenly Rx—a hemp portfolio company—just invested $9 million into Jones Soda. That investment equates to 15 million shares in the beverage company.
Additionally, Heavenly Rx also reportedly received a warrant to obtain another 20% stake in Jones Soda.
Even more, Heavenly Rx also secured the right to acquire even more stock in the open market. All told, it appears that Heavenly Rx is on pace to snatch up what could amount to 51% of Jones Soda.
Cannabis Company Buys Consumer Company: A New Approach
In many ways, this relationship is flowing in the opposite direction from most other ventures between cannabis companies and other consumer companies. Typically, the often larger consumer company buys the often smaller cannabis company.
But not in this case. And as CNN Business reports, Heavenly Rx’s investment into Jones Soda could be especially beneficial to Jones Soda.
Years ago, Jones Soda made a name for itself by selling a broad range of unusual and interesting flavors. Additionally, the company was known for using photos submitted by customers on its labels.
But in more recent years, things have not been going as well for Jones Soda. In fact, the company’s finances are reportedly in decline.
CNN Business reported that the company posted $13.3 million in revenue in 2017. The next year, the company’s revenue dropped to $12.6 million. And so far, 2019 has reportedly not been any better for the soda company.
But with the influx of capital coming from Heavenly Rx, the company hopes to turn things around. Specifically, the company plans to use the money to continue building its brand and marketing its current drinks. And it will also move beyond soda to include a new line of CBD beverages.
At this time, it is unclear when these new products will show up in stores. Part of that has to do with ongoing uncertainty surrounding the legal status of CBD.
But some governmental agencies are not so sure. For example, CNN Business reported that the U.S. Food and Drug Administration is currently reviewing whether or not CBD derived from hemp plants can be used in consumer products.
Lindsey, ByNick. “CBD Company Purchases Large Stake in Jones Soda Company.” Green Rush Daily, 15 July 2019, greenrushdaily.com/business/cbd-company-purchases-large-stake-in-jones-soda-company/.