“The JV with Bloom is an excellent opportunity for BevCanna to partner with a strong, reputable brand in the vape category,” said Emma Andrews, Chief Commercialization Officer at BevCanna. “This agreement leverages BevCanna’s expertise in manufacturing infused cannabis products and Bloom’s reputation for creating safe, effective, appealing vapor cartridges and disposables. Canadians are eager to see more vape options from trust-worthy retailers, and we’re excited to be able to provide that.”
Bloom products are sold in over three hundred retailers in four States: California, Nevada, New Mexico, and Washington; and available in leading retailers such as MedMen, Planet 13, Cookies, and Connected.
Letter of Intent
The LOI provides that BevCanna and Capna, production partner to Bloom, will negotiate in good faith towards a joint venture arrangement (the “Definitive Agreement”) pursuant to which BevCanna would manufacture, possess, and sell cannabis products on behalf of Capna. The parties expect the following non-binding terms of the LOI to be formalized in the Definitive Agreement:
In connection with the LOI, on October 22, 2019, BevCanna subscribed for 135,747 Seed Series Preferred Shares in the capital of Capna (“Capna Shares”) for an aggregate subscription price of US$250,000, and expects to subscribe for additional Capna Shares for an aggregate subscription price of US$250,000 upon entry into the Definitive Agreement. Entry into the Definitive Agreement is expected to occur by November 1, 2019.
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 an expertise unmatched in the emerging cannabis beverage category. Based in British Columbia, Canada, BevCanna has a 130-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 72M bottles per shift/per annum.
Disclaimer for Forward-Looking Information
This news release contains forward-looking statements under applicable securities laws, including the statements that: the Company will manufacture and sell Bloom branded products, including cannabis concentrates and extracts in Canada; that the Company will acquire exclusive licensing and manufacturing rights to select product formats, technology and branding assets of Bloom; that the Company will be able to provide Canadians with more vape options from trust-worthy a retailer; the expected terms of the Definitive Agreement; that the Company expects to subscribe for additional Capna Shares for an aggregate subscription price of US$250,000 upon entry into the Definitive Agreement; that the Company expects to be granted a licence by Health Canada; and the timing of entry into the Definitive Agreement. These statements are based on certain assumptions regarding the issuances of licences by Health Canada to the Company. Readers are cautioned not to place undue reliance on forward-looking statements. The assumptions of the Company, although considered reasonable by it at the time of preparation, may prove to be incorrect. In addition, forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with future legislative and regulatory developments in Canada and the United States; risks associated with agriculture and farming; the Company not being issued licences by Health Canada; risks typically associated with investments in private companies, including liquidity risks; and other risks. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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