Company: JSDA
Filing Date: 2025-02-13
Form Type: 8-K
Source: 0001493152-25-006363
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Company: JONES SODA CO.
Filing Date: 2025-02-13
Form: 8-K
Item: Item 1.01
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Item
1.01 Entry into a Material Definitive Agreement.

On
February 5, 2025, Jones Soda Co. (USA) Inc. (the “ Subsidiary”), a wholly-owned subsidiary of Jones Soda Co. (the “ Company”)
entered into a loan agreement (the “ Loan Agreement”) with Two Shores Capital Corp. (the “ Lender”), pursuant to
which the Subsidiary may borrow a maximum aggregate amount of up to $5,000,000, subject to satisfaction of certain conditions. All advances drawn under the Loan
Agreement will bear interest at a rate of 13.75% per annum and all present and future obligations of the Subsidiary arising under the
Loan Agreement are secured by a first priority security interest in all of the assets of the Company, the Subsidiary and the Company’s
other United States subsidiaries (collectively, the “ Borrowing Parties”).

The
Loan Agreement contains customary events of default that include, among other things, (i) if the Subsidiary fails to make any
payment on the applicable due date concerning advances made under the Loan Agreement, (ii) if any representation or warranty
made by Borrowing Parties in the Loan Agreement or in any other document entered into by any of the Borrowing Parties in connection
with the Loan Agreement proves to be false or misleading in any material respect as of the date made, (iii) if the Subsidiary
fails to perform or observe certain covenants, terms, conditions or agreements in the Loan Agreement, (iv) if a bankruptcy, insolvency
or a similar proceeding is commenced by any Borrower Party, (v) if a judgement is entered against any of the Borrowing Parties,
(vi) if the security agreement entered into by the parties to the Loan Agreement ceases to be valid, binding or in full force
or effect, (vii) if any change of control occurs, or (viii) if there occurs in the reasonable judgement of the Lender a
material adverse effect.

The
foregoing description of the Loan Agreement does not purport to be complete and is qualified in its entirety by reference to a copy of
the Loan Agreement which will be filed as an exhibit to the Company’s quarterly report on Form 10-Q for the quarterly period
ended March 31, 2025.

Item
2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet