Cannabinoid-infused beverages maker, BevCanna Enterprises, has signed a letter of intent (LOI) to acquire beverage company, Naturo Group Investments.
The two companies have operated for the past three years under an exclusive partnership, including a master license agreement granting BevCanna access to Naturo’s 40,000-square-foot beverage manufacturing facility.
The proposed transaction will create a fully licensed white-label beverage manufacturing and distribution company.
As well as the beverage facility, the deal includes 315 acres of cultivable land, beverage manufacturing equipment and an alkaline spring water source.
BevCanna will also take ownership of the Naturo flagship brand Trace, which offers, among other products, alkaline and sparkling waters.
The LOI – which will be superseded in future by a definitive agreement – provides that BevCanna will pay for all of the issued and outstanding securities of Naturo with approximately 50,000,000 common shares in itself, at a deemed price of CAD 0.40 ($0.3 approx.) per share.
It is expected that upon completion of the transaction, the former securityholders of Naturo will own approximately 32% of the issued and outstanding common shares of BevCanna.
Closing of the proposed transaction is expected to be on or before the end of March 2021.
“We believe that the joining together of these two companies will be an unbeatable combination,” said Marcello Leone, founder of Naturo and CEO of BevCanna.
“Creating innovative beverages that consumers will love, whether mineral- or cannabis-based, wellness-focused or recreational, continues to be our passion.
“Now we’re at a stage where a business combination will position us to provide incredible value for both organisations and bring two exceptionally experienced teams together, creating one of the largest consumer packaged goods, cannabis beverage and natural products players in the industry.”
Completion of the transaction is subject to a number of conditions, including Canadian Securities Exchange acceptance.
© FoodBev Media Ltd 2020