Jones Soda Co. Divests Cannabis Beverage Business to Focus on Core Offerings

Jones Soda Co. Divests Cannabis Beverage Business

On June 23, 2025, Jones Soda Co. (CSE: JSDA) (OTCQB: JSDA), a notable player in the craft beverage scene, announced the successful sale of its cannabis beverage division, which offers products under the Mary Jones™ brand, to MJ Reg Disrupters LLC. This strategic move is designed to optimize the company’s operations by focusing on its foundational soda products and exploring opportunities in the functional and adult beverage categories.

The Transaction

According to the details of the share purchase agreement executed on June 19, 2025, the total consideration for the sale is set at $3 million. This includes immediate cash payment of $489,399 made at closing, complemented by a promissory note valued at $2,510,601. The promissory note stipulates a structured payment plan extending over the following years: $510,601 due by June 27, 2025, $500,000 by June 19, 2026, $750,000 on June 19, 2027, and another $750,000 by June 19, 2028.

In addition to the sale, both companies entered a multi-year exclusive and non-transferable trademark licensing agreement. Under this licensing agreement, MJ Reg will utilize the Mary Jones brand name in products that contain cannabis extracts, specifically those with tetrahydrocannabinol (THC). This agreement will generate an annual fee starting at $150,000 on the first anniversary of the agreement, followed by $225,000 during subsequent anniversaries. If the agreement stands for a decade, it could yield Jones Soda Co. $2,175,000.

Strategic Focus

Scott Harvey, the CEO of Jones Soda Co., emphasized that the divestiture of the cannabis beverage business marks a significant turning point for the company. He expressed, “This strategic decision allows us to align our resources with the sectors that promise the most robust long-term growth and profitability. Although we are proud of the innovation that characterized the Mary Jones brand, this move will refine our strategic goals and boost investment into our core offerings, including traditional sodas and adult beverages.”

Conversely, Joe Oblas, a director at MJ Reg Disrupters LLC, conveyed enthusiasm over acquiring the brand, stating, “We are excited to perpetuate the Mary Jones legacy and enhance its availability within the dynamic cannabis beverage landscape. Jones Soda established a remarkable and high-quality product, and our commitment is to continue its legacy of innovation and expansion.”

About Jones Soda Co.

Based in Seattle, Washington, Jones Soda Co.® is renowned for adeptly marketing and distributing premium sodas, including its popular Jones® Soda and the zero-sugar variant, Jones® Zero Sugar, in addition to its line of Spiked Jones™ adult beverages. The company is recognized for its vibrant flavors and engaging consumer interactions. Now, Jones Soda aims to expand its presence across North America through innovation and enhanced relationship building with its customers.

As the market evolves, Jones Soda Co. is poised to reinforce its commitment to quality offerings, ensuring it remains a formidable force in the beverage industry while navigating the complexities of changing consumer preferences and market dynamics. This divestiture stands as a critical step for the company as it refocuses its energies on core industries where growth potential is greatest.