MMJ Group Holdings Limited’s (ASX:MMJ) Canadian investment BevCanna Enterprises Inc (CSE:BEV) has signed a non-binding letter of intent to acquire cold-pressed juice company Little West Holdings (LW).
The California-based juice company offers a wide range of well-curated, locally-sourced juices in North America, including a line of hemp-derived CBD cold-pressed juices.
The CBD infused juices are crafted using high-quality Nano-emulsified CBD that has 0% THC.
These new blends combine locally-sourced fresh produce with naturally-derived CBD, making Little West’s products one of the only all-natural CBD beverages on the market.
Addition to portfolio
BevCanna chief commercialisation officer Emma Andrews said: “Little West’s line of cold-pressed juices will be a fantastic addition to our portfolio of cannabis-infused beverages.
“Their products are created with a focus on health and wellness, using the highest-quality, freshest ingredients, and the taste is incredible.
“There are a number of synergies with BevCanna’s range of infused beverages and we’re excited to soon be able to offer Little West juices to our customers.”
“The premise and intention behind their brand align very well with BevCanna’s vision to promote well-being and quality of life through everything we produce.”
Unique points of distribution
Andrews added: “BevCanna will also be able to leverage Little West’s unique points of distribution amongst ‘tastemaker’ accounts in the food service and hospitality channels as we look to bring additional CBD infused brands and products to market.
“Little West’s distribution includes a number of high-end hotels, retailers, restaurants and grocery chains, including Ace Hotels, Viceroy Hotels, WeWork, Apple Headquarters, La Colombe, Alfred Coffee, Bristol Farms, and Gelsons Market.”
Consideration for acquisition
In consideration for the acquisition, the LOI contemplates that the LW shareholders would be paid by BevCanna about US$1 million in cash and US$3 million in common shares in the capital of BevCanna.
The deemed issuance price of the shares would be equal to C$0.56, subject to compliance with CSE policies and applicable securities laws.
The company would also issue additional shares to LW shareholders once milestones are achieved by LW.