Lifestyle Global Brands Limited (CVE:GBE) revealed Friday that it has inked a binding memorandum of understanding with Elegance Spirits Inc to create an integrated alcoholic spirits and cannabis company.
Elegance is a Delaware corporation and beverage company focused on innovating, branding and selling a range of drinks globally.
Lifestyle Global said that following the earlier announced business combination between CannHealth Group Limited and Lifestyle Global, the MoU sets forth the parties' desire to combine businesses through the acquisition by Lifestyle Global of all of Elegance Brands
“The proposed transaction is expected to create an integrated alcoholic spirits and cannabis company and integrate Elegance's brands with the business of Lifestyle Global and CannHealth, in order to create synergies across manufacturing, distribution and sales,” said the company.
Elegance's core product, Elegance vodka, is manufactured by Australian Boutique Spirits Ltd, which will be a wholly owned subsidiary of Lifestyle Global on completion of the CannHealth transaction.
The proposed transaction is subject to the execution of a definitive agreement, the closing of the CannHealth transaction, and listing of the ordinary shares of Lifestyle Global on the Canadian Securities Exchange. It is also contingent on to approvals from regulatory bodies.
The global specialty beverages company is betting big on cannabis-infused drinks as it gets ready to launch a line of refreshments in the US. The company currently operates manufacturing and branding projects in Australia and North America.
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