BevCanna Enterprises Inc. (CSE:BEV) (FRA:7BC), the emerging leader in infused cannabis beverages, announced on Friday that it has received a capital injection of $750,000.
The private placement was for $250,000 at $0.25 per unit and the $500,000 senior management exercise of 1,500,000 stock options was at an exercise price of $0.30 per share.
The group said the funds are being used to provide additional working capital, including that related to the preparation of the company's Canadian industry-leading high-capacity beverage manufacturing operations for the imminent receipt of their Standard Processing License from Health Canada. Receipt of this license will enable BevCanna to begin production at the manufacturing facility for its white-label clients and to begin selling its products through licensed Canadian retailers.
"This capital injection has allowed us to accelerate the equipping of our world-class beverage manufacturing facilities to process a range of infused cannabis beverages," John Campbell, chief financial officer of BevCanna said in a statement. "We're in the final stages of approval for our Standard Processing License and these enhancements will ensure that we're ready to move ahead immediately upon receipt."
A portion of the funds will be invested into enhancements of BevCanna's recently acquired direct-to-consumer website, Pure Therapy, stimulating revenue growth through the investment in customer acquisition and the addition of new products.
Each unit is comprised of one common share in the capital of the Issuer and one-half of one transferable common share purchase warrant (each whole warrant. Each warrant will entitle the holder thereof to acquire one share at price of $0.40 each until 5.00pm ET on the date of expiration of the warrant, which is two years following the offering closing date.
The securities acquired in the private placement are subject to resale restrictions imposed by applicable law or regulation, including a statutory hold period expiring four months and one day from the date of the placement.
BevCanna develops and manufactures cannabinoid–infused beverages and consumer products for in–house brands and white label clients. With decades of experience creating, branding and distributing iconic brands that have resonated with consumers on a global scale, the team demonstrates an expertise unmatched in the emerging cannabis beverage category.
Based in British Columbia, Canada, BevCanna owns the exclusive rights to a pristine spring water aquifer, access to a world–class 40,000–square–foot, HACCP certified manufacturing facility, with a current bottling capacity of up to 210M bottles per annum. The company also recently acquired US natural health and wellness e-commerce platform Pure Therapy.
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