Jones Soda Co. has sold its cannabis beverage business, including all related cannabis-specific assets under the Mary Jones brand, to MJ Reg Disrupters LLC, a privately held company.

Mary Jones offers these HD9- and cannabis-infused flavors: Root Beer, Berry Lemonade, Green Apple, Cola, Orange & Cream, and MF Grape. They can be found in the brand’s gummies, shooters, and beverages.

The divestiture is part of Jones Soda’s previously announced strategy to streamline operations and focus on its core soda offerings, modern functional beverages, and emerging adult beverage category. All of the equity interests in the Cannabis Subsidiaries were sold to MJ Reg for $3 million.

As part of the transaction, the premium soda brand and MJ Reg entered into a multi-year exclusive and non-transferrable trademark licensing agreement under which MJ Reg will have the right to use the Mary Jones brand name in any consumable product containing an emulsion derived from the marijuana plant with tetrahydrocannabinol (THC), in exchange for an annual licensing fee of: (a) $150,000 payable on the one (1) year anniversary of the Effective Date, and (b) $225,000 on each subsequent anniversary of the Effective Date. Assuming a 10-year term, the total amounts due to Jones Soda Co. would be $2,175,000.

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“The sale of the cannabis beverage business marks an important milestone in our effort to focus our resources on areas where we see the strongest long-term growth and profitability,” said Scott Harvey, CEO of Jones Soda Co. “We are proud of the innovation behind the Mary Jones brand, but I believe this divestiture enables us to sharpen our strategic priorities and accelerate investment in our core soda, functional beverage, and adult beverage categories.”