BevCanna Enterprises Inc (CSE:BEV) (OTCMKTS:BVNNF) announced Wednesday it is partnering with cannabis operator Capna Intellectual Inc to bring its leading multi-state cannabis vape brand, Bloom, to Canada.
In a statement, BevCanna said it will manufacture and sell Bloom-branded products, including cannabis concentrates and extracts, in Canada.
The cannabinoid-infused beverage specialist will also acquire exclusive licensing and manufacturing rights to select product formats, technology and branding assets of Bloom.
READ: BevCanna Enterprises outlines goals for next six months, including moving towards a product launch in California
“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 US states -- California, Nevada, New Mexico and Washington -- and are available in leading retailers such as MedMen, Planet 13, Cookies, and Connected.
BevCanna and Capna on October 15 entered into a non-binding letter of intent, which provides that both companies will negotiate in good faith towards a joint-venture arrangement 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.
- 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, BevCanna on Tuesday subscribed for 135,747 Seed Series preferred shares in the capital of Capna 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, which is expected by November 1.
Based in British Columbia, BevCanna has a 130-acre outdoor cultivation site in the fertile Okanagan Valley, along with exclusive rights to a pristine spring water aquifer, as well as a world-class 40,000 sq ft manufacturing facility, with a current bottling capacity of up to 72 million bottles per shift per year.
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