VANCOUVER, BC. — Simply Better Brands Corp. (SBBC), which operates in the emerging plant-based and holistic wellness consumer product categories, has reached an agreement to merge with Seattle-based Jones Soda Co., a maker of premium craft beverages.
As part of the transaction, SBBC will acquire all of the issued and outstanding common shares of Jones at a deemed value of 75¢ per share, payable in fully paid and non-assessable common shares of SBBC based on a price per share equal to $3.65. In addition, SBBC has agreed to assume all of Jones Soda’s outstanding debt. The aggregate value of the transaction is approximately $98.9 million, the companies said.
If the merger goes through, the combined company is expected to increase shareholder value through operational synergies and accelerated sales growth in three areas: food and beverage (Jones Soda and Trubar); plant-based wellness — CBD and THC (PureKana, Seventh Sense, Herve, Mirage and Mary Jones); and health and beauty (No BS Skincare).
“Our growth model remains consistent: acquire and build emerging Gen Z and millennial brands in the wellness space through category, channel and geographic expansion,” said Kathy Casey, chief executive officer of SBBC. “We see joining forces with Jones as an incredible fit due to a common wellness mission, consumer cohort, and leadership approach. Our previous acquisitions of PureKana, Trubar and No BS brands have yielded tremendous opportunities to fuel our growth and we are thrilled to have the opportunity for the iconic Jones brand to join our expanding portfolio. We believe that in addition to solving consumer problems in the wellness place, this latest move will be fundamental to driving shareholder value.”
Mark Murray, CEO of Jones Soda, said the merger provides an opportunity for Jones Soda to deliver diversification to its core business of craft beverages.
“We are bringing together not only strong consumer brands but also two strong management teams that we believe will deliver growth and operational synergies,” Mr. Murray said.
Upon completion of the transaction, SBBC said it plans to change its name to Jones Soda or some derivation and choose a new trading symbol. Also at that time, Jones Soda shares will be de-listed from the Canadian Securities Exchange.
SBBC’s businesses include Tru Brands, Inc., which was acquired in August 2021. Tru Brands is a health and wellness brand specializing in nutritious snacks for women. Founded in 2018, Tru Brands offers a line of dessert-inspired protein bars made with plant-based ingredients such as cassava, cacao and brown rice protein.