VANCOUVER, March 26, 2020 /CNW/ – Emerging leader in infused cannabis beverages, BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) (“BevCanna” or the “Company”) announced today that it has entered into a non-binding letter of intent (the “LOI”) to partner with rising California cannabis beverage brand Calexo.
Under the proposed agreement, BevCanna will become the exclusive Canadian manufacturing partner for the newly-launched Calexo line of beverages. BevCanna will leverage its extensive experience in developing and launching beverages in the Canadian market to maintain responsibility and compliance with Health Canada, as well as all national sales and distribution efforts related to the joint venture (JV). The JV will be structured as a profit share joint venture agreement, and the maintenance of exclusivity is subject to mutually agreed-upon forecast milestones being met. The agreement will be for an initial term of five years with a subsequent five-year renewal option.
In addition to the Canadian manufacturing arrangement, Calexo will also provide BevCanna with access to its current and future U.S. distribution networks for future product launches. BevCanna’s current U.S. plans include the upcoming Californian launches of their ready-to-drink and powdered beverage mix products.
“The partnership with Calexo is an exciting opportunity for BevCanna,” said John Campbell, Chief Strategic Officer at BevCanna. “Calexo combines unique branding, all-natural ingredients and flavour-forward formulations to create elegant, social beverages. These drinks represent the type of high-quality products that BevCanna is committed to bringing to the Canadian market. We look forward to a prosperous partnership that results in continued growth for both partners.”
Offered in a choice of two flavors, Citrus Rose and Cucumber Citrón, Calexo is now available via delivery throughout Los Angeles from Sweet Flower Melrose or Sweet Flower Arts District dispensaries. Product availability will soon expand statewide in California. Made with all-natural juices, botanicals, and nano-emulsified THC (10mg per 22oz. bottle), Calexo beverages are designed for sharing, and are precisely dosed for an easy-to-control, uplifting experience.
The agreement is subject to satisfactory completion of due diligence investigations by each of the partners into the other partner’s business, Calexo demonstrating that its trademarks are transferable to the Canadian market, negotiation and execution of a definitive agreement, and approval by each partner’s board of directors.
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 resonate with consumers on a global scale, the team demonstrates an 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.
Founded by artists and creatives in 2019, Calexo is a Los Angeles-based beverage brand that launched its first sparkling cannabis drinks in 2020. Made with all-natural fruit juices, botanicals, and nano-emulsified THC, Calexo beverages are precisely dosed for an easy-to-control, uplifting experience that brings a smile to your mind. Calexo beverages are meant for sharing, sipping and savoring for a rapid onset of 15-minutes and an offset of one hour. Although Calexo cannot legally use the “O” word in cannabis, the brand is committed to always using carefully-selected, premium ingredients with no artificial flavors, sweeteners or colors, ever. For a close look at Calexo, please visit calexo.co, or high-five the brand on Instagram @calexo.co and on Medium.
SOURCE BevCanna Enterprises Inc.