Jones Soda Secures $5M Credit Facility to Fuel 2025 Sales Growth

Jones Soda Co. (CSE: JSDA, OTCQB: JSDA) has secured a new $5 million revolving credit facility with Two Shore Capital Corp. (Two Shores), replacing its previous $2 million facility. The new facility, secured by all of the Company's and its subsidiaries' assets, bears an interest rate of 13.75% per annum. In addition to the facility, Jones Soda has agreed to issue 750,000 warrants to Two Shores with an exercise price of $0.45 per share for a three-year term, subject to Canadian Securities Exchange approval.

The new credit facility is expected to support Jones Soda's sales growth in its modern soda and adult beverage categories in 2025. Paul Norman, Chairman of Jones' Board of Directors, stated, "We expect this new larger credit facility agreement with Two Shores to support the expected sales growth in Jones' modern soda and adult beverage categories in 2025." Sean Rosas, Partner in Two Shores, commented, "Our experience working with Paul and Brian in other CPG ventures gives us confidence that Jones is focused on the right market opportunities in the evolving beverage marketplace and that the Company will have the financial discipline to manage their business successfully."

Jones Soda plans to use the funds from the new credit facility for working capital purposes to support its expected sales growth in the modern soda and adult beverage categories. The Company's strategic plan for 2025 is expected to focus on driving sales growth in these categories, potentially through investments in marketing, product development, and distribution. The new credit facility is expected to provide Jones Soda with the necessary financial resources to execute its strategic plan and achieve its sales growth targets.



The issuance of 750,000 warrants to Two Shores at an exercise price of $0.45 per share with a three-year term has the potential to impact Jones Soda's capital structure and potential future dilution. If Two Shores exercises all the warrants, it will result in the issuance of an additional 750,000 shares of Jones Soda, diluting the ownership of existing shareholders. However, if Two Shores exercises the warrants, Jones Soda will receive additional capital, which can be used to fund its operations, expansion, or other strategic initiatives. The potential impact on Jones Soda's capital structure and potential future dilution will depend on whether Two Shores exercises the warrants and the market's reaction to the issuance.

In conclusion, Jones Soda's new $5 million credit facility with Two Shore Capital Corp. is expected to support the Company's sales growth in its modern soda and adult beverage categories in 2025. The new facility, along with the issuance of 750,000 warrants to Two Shores, provides Jones Soda with the necessary financial resources to execute its strategic plan and achieve its sales growth targets. The potential impact on Jones Soda's capital structure and potential future dilution will depend on whether Two Shores exercises the warrants and the market's reaction to the issuance.