BevCanna Enterprises Inc (CSE:BEV) (OTCMKTS:BVNNF), a dominant player in the infused cannabis beverages industry, said Thursday that it has finalized a deal with Maritime-based licensed cannabis producer Argentia Gold Corp to exclusively represent BevCanna's line of cannabis-infused beverages in Newfoundland, Prince Edward Island (PEI) and New Brunswick.
The two companies have signed a definitive agreement for Argentia to distribute, market and sell BevCanna products across the three provinces.
With consumption rates for cannabis among the highest in Canada (25.9% for Newfoundland, and 20.9% for PEI), the Atlantic provinces represent an attractive market for cannabis-infused product producers like BevCanna.
According to the company, the market for cannabis is tipped to expand to $56 million annually in New Brunswick by 2025, $49 million in Newfoundland and $21 million per year in PEI.
BevCanna said it settled on Argentia Gold for its “strong knowledge” of the Atlantic cannabis markets and sales strategy for the 50 licensed retailers across the three provinces. The company said engaging an “experienced partner” in the region will also allow BevCanna “to focus on other significant Canadian markets, while building revenue in the Atlantic provinces.”
"Argentia is the ideal partner for us in the burgeoning Atlantic market," BevCanna Chief Strategic Officer John Campbell said in a statement.
"They have an unparalleled knowledge of the regional cannabis landscape and a detailed understanding of the distribution network. They also have excellent relationships with the provincial bodies in these provinces, which will assist us as we focus on building our presence in the region," he added.
BevCanna uses patented technology to make water-soluble cannabinoid infusions using THC and CBD from cannabis and hemp for in-house brands and white-label clients. The company has a 292-acre cultivation site in the Okanagan Valley, a pristine spring water aquifer, and a 40,000-square-foot manufacturing facility in Osoyoos.
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