Original craft soda company, Jones Soda Co (OTCMKTS:JSDA), recognized for its unconventional flavorsas well as user-designed label artwork, announced on July 15, 2021 issuance of US 2,000,000 unsecured convertible debenture of US$2,000,000. On July 14, the firm had announced a non-binding term sheet with Pinestar Gold Inc, a Canadian Reporting Issuer, and SOL.
The firm aims to utilise the proceeds for expansion of the company’s business and cover its transaction costs venturing into sale of cannabis-containing beverages, edibles and related products.
Mark Murray, President and CEO of Jones, said that he believes Cannabis-infused beverages and edibles being a perfect fit for the firm and that the proposed transactions will ensure groundwork for a strategic transformation. The firm is looking to operate its cannabis operations through one or number of subsidiaries, which are different from its craft beverage business.
Murray also said that SOL as well as large shareholders of Pinestarwould be providing Jones with the expertise as well as resources for delivery on the company’s growth plans. The transactions are subject to due diligence by the parties as well as negotiations and execution of a definitive agreement. The firm has signed registrations rights agreement with SOL and hence agreeing on registering with the United States Securities and Exchange Commission for resale of the Jones Shares.
On Thursday, JSDA stock soared 45.65% at $0.6700 with more than 3.37 million shares, compared to its average volume of 151k shares. The stock had moved within a range of $0.4800 – 0.7300 after opening the trade at $0.4850. Over the past 52-week, the stock has been trading within a range of $0.1300 – 0.7800.