Recap of special management call includes upcoming corporate milestones and details of proposed combination with established beverage manufacturer
VANCOUVER, British Columbia–(BUSINESS WIRE)–Emerging leader in infused cannabis beverages, BevCanna Enterprises Inc. (CSE:BEV, OTCQB:BVNNF, FSE:7BC) (“BevCanna” or the “Company”) is pleased to provide a recorded recap of the special management call held on Tuesday November 24, 2020. The call discussed upcoming corporate milestones and reviewed recent developments at the developer and manufacturer of cannabinoid‐infused beverages and consumer products for in‐house brands and white label clients.
BevCanna provided updates on the following:
- The Company announced the landmark proposed acquisition of established beverage manufacturer and BevCanna partner Naturo Group Investments Inc. (“Naturo”). The proposed combination will create the only fully licensed white-label beverage manufacturing and distribution company with the capability to manufacture and distribute both CPG and cannabis-based beverages, with a global multi-channel distribution network of traditional retail and cannabis sales channels.
- Naturo brings over C$35M in assets, including the 40,000 sq. ft. beverage facility, 315-acres of cultivatable land valued at C$10.4M, beverage manufacturing equipment valued C$3.4M as of year-end and Naturo’s exclusive onsite alkaline spring water source, independently valued at C$18M. Naturo’s latest independent estimate of enterprise value is C$38M-C$42 (February 2020).
- Naturo also brings the nationally distributed Naturo flagship brand, TRACE, which currently enjoys a leadership position within the Canadian fulvic/humic plant-based functional mineral category and is sold in more than 3,000 Canadian retail stores, with select international agreements and partnerships under review.
- The agreement will eliminate future payment liabilities under BevCanna’s current lease agreement, royalty agreement and manufacturing agreements with Naturo. These eliminated agreements and fees will preserve future working capital and allow BevCanna to direct more resources towards its operations and shareholder value.
- The proposed company will combine the decades of consumer-packaged goods (“CPG”), capital markets, corporate strategy and public company expertise of both operational teams.
- Recent developments and initiatives related to Pure Therapy, BevCanna’s U.S. natural health and wellness direct to consumer e-commerce operation.
- The Company’s commercialization plans for the launch of the award-winning Keef and Cali-Bloom cannabis brands in the Canadian market, as well as the Company’s white-label operations, in anticipation of the imminent receipt of BevCanna’s Standard Processing License (SPL). The SPL is in the final review stage and the Company is in active discussions with Health Canada.
To access the call replay by telephone: Dial 1-800-319-6413 and use the passcode 5703#.
The replay of the audio call will be available until end of day December 1, 2020.
To access the call replay through the web: http://services.choruscall.ca/links/bevcanna20201124.html
The webcast will be available until end of day February 24, 2021.
View a replay of BevCanna CEO Marcello Leone’s Monday November 23, 2020 broadcast feature on BNN Bloomberg. BevCanna CEO Marcello Leone is interviewed on BevCanna’s strategy, upcoming launch in the Canadian cannabis market and progress on its international initiatives. BNN Bloomberg reaches more than 982,000 weekly through its national broadcast program and partner sites.
About BevCanna Enterprises Inc.
BevCanna Enterprises Inc. (CSE: BEV, OTCQB: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 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. BevCanna also recently acquired U.S. natural health and wellness e-commerce platform Pure Therapy. BevCanna’s vision is to be a global leader in infused innovations.
This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company, including the statements regarding: the terms of the proposed acquisition of Naturo (the “Transaction”); that the parties will enter into the definitive agreement regarding the Transaction; the future business plans of Naturo and BevCanna; and the perceived benefits of combining the businesses of Naturo and BevCanna; the Company’s commercialization plans for the launch of the award-winning Keef and Cali-Bloom cannabis brands in the Canadian market, as well as the Company’s white-label operations, in anticipation of the imminent receipt of BevCanna’s Standard Processing License (SPL); and other statements regarding the business plans of the Company.
Forward-looking statements are based on certain assumptions regarding the completion of the Transaction; the issuances of licences by Health Canada to the Company under the Cannabis Act; future positive legislative, tax and regulatory developments in the United States with respect to cannabis; a continued high regulatory barrier entry for cannabis-infused beverages; successful and timely commercialization of the company’s products; successful and timely negotiation of various agreements; and expectations with respect to the future growth of recreational cannabis products. While the Company considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. 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, the Transaction not being completed at all or on the terms announced; the Company not being issued licenses by Health Canada; risks associated with general economic conditions; risks associated with climate and agriculture; changes in consumer preferences; adverse industry events; future legislative, tax and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the inability to implement business strategies; the inability to enter into various agreements with other parties; competition; currency and interest rate fluctuations and other risks. Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. 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. For more information on the risk, uncertainties and assumptions that could cause anticipated opportunities and actual results to differ materially, please refer to the public filings of the Company which are available on SEDAR at www.sedar.com. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. 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, and the Company does not assume any liability for disclosure relating to any other company mentioned herein.
On behalf of the Board of Directors:
John Campbell, Chief Financial Officer and Chief Strategy Officer
Director, BevCanna Enterprises Inc.
For media enquiries or interviews, please contact:
Wynn Theriault, Thirty Dash Communications
For investor inquiries, please contact:
Luca Leone, BevCanna Enterprises Inc.