BevCanna Enterprises Inc (CSE:BEV) (OTCMKTS:BVNNF) shares rose on Thursday after the firm said it has struck a deal with private firm Higharchy Ventures Ltd to make and launch cannabis beverages for sale in Canada amid the potential legalization of the drinks in the country this month.
In afternoon trading in Toronto, BevCanna shares shot 10.42% higher at $0.42.
Infused beverages with cannabis or CBD are expected to be legalized in Canada in October 2019.
BevCanna will manufacture Higharchy’s beverage-related brands, including both in-house and established brands, while it will also be a preferred supplier through Higharchy’s cannabis retail holdings where regulations permit.
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"This partnership is a great opportunity to work closely with another emerging leader in the Canadian cannabis space,” said Emma Andrews, chief commercialization officer at BevCanna.
"We’ll leverage our existing manufacturing expertise and facilities to help Higharchy realize their vision of producing world-class brands and products, and we will in turn benefit from Higharchy’s retail holdings as we launch our own beverage brands in Canada.”
Higharchy is invested in the West Coast Cannabis Store, which is set to open this Fall in both British Columbia and Alberta.
The company is currently the largest shareholder in Suprette, a cannabis retailer in Ottawa, which in its first five months of business, generated over C$7 million in sales. It is also an investor in Keef Brands - one of the largest infused beverage brands in the United States.
Based in British Columbia, BevCanna has a 130-acre outdoor cultivation site in the Okanagan valley and the exclusive rights to a pristine spring water aquifer, as well as a world-class 40,000 sq ft, HACCP certified manufacturing facility, with a current bottling capacity of up to 72 million bottles per shift/per year.
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