BevCanna Enterprises Inc (CSE:BEV) (OTCPINK:BVNNF) is to bring the US cannabis vape brand Bloom to retailers across Canada.
The cannabis drinks firm has inked a definitive deal with cannabis operator Capna Intellectual Inc, which will see Bevcanna manufacture and sell Bloom branded products, including cannabis concentrates and extracts.
The deal covers an initial term of five years, with automatic five year renewal periods, and BevCanna will pay Capna a royalty of 38% of all net profits derived from the products.
"Canadians are eager to see more vape options from trust-worthy retailers, and we're happy to be able to provide that," John Campbell, the chief strategic officer at BevCanna said in a statement.
Bloom products are currently sold in over 300 retailers across five US states - California, Nevada, New Mexico, Oklahoma, and Washington - where they are available in locations such as MedMen, Planet 13, Cookies, Caliva, and Connected.
"Canada has a rich history with cannabis and Canadians want vapes that match the experience of smoking the plant. That's what our Bloom's goal is: deliver authentic cannabis experiences everywhere, every time," Vitaly Mekk, CEO of Capna Intellectual noted.
BevCanna revealed it will also acquire exclusive licensing and manufacturing rights to certain of Bloom's product formats, technology and branding. Bloom will be sold under the name "Cali-Bloom" in Canada.
Notably, If Capna decides to extend their products into beverages, BevCanna will be the exclusive beverage manufacturer for Capna in Canada and hold rights of first refusal to be the exclusive beverage manufacturer in any other US state or Europe.
"We're also seeing great synergies between the two companies," said BevCanna. "We've also discussed potential future opportunities to work together in other markets and product lines."
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