Emerging leader in infused cannabis beverages, BevCanna Enterprises Inc. (CSE: BEV) (OTC: BVNNF) (FSE: 7BC) (“BevCanna” or the “Company”) announced today that it has entered into a non-binding letter of intent (the “LOI”) dated October 15, 2019 to partner with high-profile cannabis operator company, Capna Intellectual, Inc. (“Capna”), to bring its leading multi-state cannabis vape brand, Bloom, to Canada. BevCanna will manufacture and sell Bloom branded products, including cannabis concentrates and extracts, in Canada. BevCanna will also acquire exclusive licensing and manufacturing rights to select product formats, technology and branding assets of Bloom.
“The JV with Bloom is an excellent opportunity for BevCanna to partner with a strong, reputable brand in the vape category,” said Emma Andrews, Chief Commercialization Officer at BevCanna. “This agreement leverages BevCanna’s expertise in manufacturing infused cannabis products and Bloom’s reputation for creating safe, effective, appealing vapor cartridges and disposables. Canadians are eager to see more vape options from trust-worthy retailers, and we’re excited to be able to provide that.”
Bloom products are sold in over three hundred retailers in four States: California, Nevada, New Mexico, and Washington; and available in leading retailers such as MedMen, Planet 13, Cookies, and Connected.
Letter of Intent
The LOI provides that BevCanna and Capna, production partner to Bloom, will negotiate in good faith towards a joint venture arrangement (the “Definitive Agreement”) pursuant to which BevCanna would manufacture, possess, and sell cannabis products on behalf of Capna. The parties expect the following non-binding terms of the LOI to be formalized in the Definitive Agreement:
- BevCanna would manufacture, possess, and sell cannabis products, including cannabis concentrates and cannabis extracts, on behalf of Capna, as and when permitted by applicable Canadian regulations under a licence expected to be granted by Health Canada to the Company; and
- Capna would grant an exclusive license to certain technology and branding assets to BevCanna in Canada in connection with the Company’s production of cannabis products for Capna.
- In the event Capna decides to extend their products to beverage, BevCanna shall be the exclusive beverage manufacturer for Capna in California and Canada, and will hold rights of first refusal to be the exclusive beverage manufacturer in any other US State.
In connection with the LOI, on October 22, 2019, BevCanna subscribed for 135,747 Seed Series Preferred Shares in the capital of Capna (“Capna Shares”) for an aggregate subscription price of US$250,000, and expects to subscribe for additional Capna Shares for an aggregate subscription price of US$250,000 upon entry into the Definitive Agreement. Entry into the Definitive Agreement is expected to occur by November 1, 2019.
About BevCanna Enterprises Inc.
BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) develops and manufactures cannabinoid-infused beverages and consumer products for in-house brands and white label clients. With decades of experience creating, branding and distributing iconic brands that have resonated with consumers on a global scale, the team demonstrates an expertise unmatched in the emerging cannabis beverage category. Based in British Columbia, Canada, BevCanna has a 130-acre outdoor cultivation site in the fertile Okanagan Valley and the exclusive rights to a pristine spring water aquifer, as well as a world-class 40,000-square-foot, HACCP certified manufacturing facility, with a current bottling capacity of up to 72M bottles per shift/per annum.