Access to the extensive library of genetics, including 50 premium cannabis strains, expected to dramatically enhance the infused beverage company’s (BevCanna) yield
VANCOUVER, Jan. 15, 2020 /CNW/ – Emerging leader in infused cannabis beverages, BevCanna Enterprises Inc., (CSE: BEV, Q: BVNNF, FSE:7BC) (“BevCanna” or the “Company“) is pleased to announce that it has acquired Carmanah Craft Corp. (“Carmanah”).
Pursuant to a share exchange agreement (the “Agreement“) dated January 13, 2020, with Carmanah and each of the shareholders of Carmanah. The Company has completed the acquisition of all the issued and outstanding securities of Carmanah and the business of Carmanah (the “Acquisition“).
The acquisition of the cannabis genetics expert gives BevCanna access to an extensive library of cannabis genetics. They are including 50 premium cannabis strains and over 25 types of cannabis seeds, including six auto flower seed varieties. There is an excess of 50 strains by clone and 250,000 cannabis seeds ranging from high THC to high CBD. Additionally, a large portion of the genetics is outdoor-specific strains that originated in California. They boast a very similar climatic zone to our operations in the Okanagan and are expected to increase yields. The library of genetics includes many of the top mold-resistant, outdoor, high yielding, auto flower seeds, many of which are anticipated at 2kg+ of yield per plant. With the addition of such a substantial auto flower library, the harvest times will start much earlier allowing for much more organized final processing.
“This deal will dramatically increase our overall cannabis yield projections,” said Joey Bedard-Brunet, Head of Cultivation at BevCanna. “Together with the recently announced increase in our outdoor cannabis cultivable land to almost 300 acres, the acquisition of Carmanah’s proven outdoor genetics will allow BevCanna to develop into one of the largest outdoor cannabis cultivators in Canada,” said John Campbell, Chief Strategy Officer at BevCanna.
Terms
In consideration for the Acquisition, the Company issued 8,941,176 common shares in the capital of the Company to the shareholders of Carmanah at a deemed price of $0.425 per share. Closing of the Acquisition was conditional upon receipt by the Company of a confidential third-party valuation valuing the shares of Carmanah as being equal to or greater than the purchase price. No finder’s fee was paid in connection with the Acquisition. The Acquisition is an arm’s length transaction.
None of the securities issued in connection with the Acquisition will be registered under the United States Securities Act of 1933, as amended (the “1933 Act“), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.
About BevCanna Enterprises Inc.
BevCanna Enterprises Inc. (CSE: BEV, Q:BVNNF, FSE:7BC) 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 expertise unmatched in the emerging cannabis beverage category. Based in British Columbia, Canada, BevCanna has a 292-acre outdoor cultivation site in the fertile Okanagan Valley and the exclusive rights to a pristine spring water aquifer, as well as a world-class 40,000-square-foot, HACCP certified manufacturing facility, with a current bottling capacity of up to 210M bottles per annum.
On behalf of the Board of Directors
“John Campbell”
Director, BevCanna Enterprises Inc.
SOURCE BevCanna Enterprises Inc.