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Acquisition will offer access to the growing international natural health products market and a substantial platform on which to release hemp-based CBD drink line
VANCOUVER, BC, Sept. 4, 2020/ PRNewswire/ – Emerging leader in infused marijuana beverages, BevCanna Enterprises Inc. (CSE: BEV) (OTCQ: BVNNF) (FSE: 7BC) (“BevCanna” or the “Business“) is pleased to reveal that it entered into a share exchange contract (the “Contract”) to acquire (the “Acquisition“) natural health product company Naturally Pure Therapy Products Corp. (“Pure Therapy“). Pure Treatment is a direct-to-consumer e-commerce business selling a series of natural health items, consisting of nutraceutical and hemp-based cannabidiol items throughout North America and Western Europe. Pure Therapy’s comprehensive catalogue of solutions are proprietary and expertly crafted based on market demand and item quality. Every product made is third-party tested for pureness and manufactured in GMP (great manufacturing practices) accredited centers.
The Acquisition will supply BevCanna a proven e-commerce brand and platform to more expand and launch its own propriety items directly into the global health and wellness market, consisting of the burgeoning US CBD market. Pure Treatment brings a substantial list of over 22,000 consumers that it has actually gotten given that 2017. The brand has actually accomplished unaudited fiscal year 2019 gross profits of C$ 4,768,000, and a net profit of C$ 218,000. BevCanna tasks immediate development in the brand in 2020 and beyond accomplished through new item integration, and by speeding up the development of the existing natural health products line, leveraging the substantial e-commerce marketing proficiency of the existing Pure Therapy group. The present mix of subscription-based and traditional sales profits will likewise offer a strong repeating earnings stream for BevCanna.
“The Pure Therapy organization is a very synergistic addition to BevCanna,” commented John Campbell, Chief Strategic Officer at BevCanna. “The brand has a considerable existing client base and a really effective direct sales platform in which we can considerably take advantage of through increased marketing spend, and new item integration into an already proven model. Specifically, the acquisition will function as a conduit to launch our hemp-based CBD beverages into the United States and other international markets. We’ll have the ability to right away access their existing consumer base and will accelerate the growth of the site by including more high-margin value-added products and enhancing the branding instructions.”
Regards to the Acquisition
Pursuant to the Arrangement, BevCanna has actually consented to provide 30,000,000 common shares in the capital of the Company (each, a “Factor to consider Share“) to the investors of Pure Therapy in exchange for all the released and exceptional securities of Pure Therapy at a deemed cost of $0.20 per Factor to consider Share for total deemed factor to consider of $6,000,000 (the “Purchase Rate“). No finder’s fee is payable in connection with the Acquisition. The Acquisition is an arm’s length deal.
Conditions of the Acquisition
In addition to customary conditions related to such a deal, the Contract provides that the closing undergoes the list below conditions: (i) invoice of all needed regulatory approvals; (ii) each of the board of directors of BevCanna and Pure Treatment having actually approved the Acquisition; (iii) BevCanna being satisfied with the results of its due diligence relating to the monetary position of Pure Therapy; (iv); Pure Treatment shall have at least C$ 125,000 in cash assets right away prior to the closing of the Acquisition; and (vi) Pure Treatment shall not have any liabilities instantly prior to the closing of the Acquisition.
None of the securities issued in connection with the Acquisition will be signed up under the United States Securities Act of 1933, as changed (the “1933 Act“), and none of them might be provided or offered in the United States absent registration or a relevant exemption from the registration requirements of the 1933 Act. This news release will not constitute a deal to sell or a solicitation of an offer to buy nor will there be any sale of the securities in any state where such deal, solicitation, or sale would be unlawful.
BevCanna intends to supply a corporate upgrade, on or before September 15, 2020, which will offer instructions to its investors on operations, licensing, and tactical focus for the remainder of 2020.
About BevCanna Enterprises Inc.
. BevCanna Enterprises Inc. (CSE: BEV, Q: BVNNF, FSE:7 BC) BevCanna Enterprises Inc. develops and manufactures cannabinoid– infused drinks and customer items for in– house brand names and white label clients. With decades of experience producing, branding and distributing iconic brands that have resonated with consumers on a worldwide scale, the team demonstrates a know-how unequaled in the emerging cannabis beverage category. Based in British Columbia, Canada, BevCanna owns a 298– acre outside growing website in the Okanagan Valley and the special rights to a pristine spring water aquifer, access to a world– class 40,000– square– foot, HACCP licensed making facility, with an existing bottling capability of up to 210M bottles per year. BevCanna’s vision is to be an international leader in infused developments.
On behalf of the Board of Directors:
John Campbell, Chief Financial Officer and Chief Method Officer
Director, BevCanna Enterprises Inc.
. Forward-Looking Details: This news release might consist of positive info within the meaning of Canadian securities legislation, worrying business of the Business. Positive information is based on specific essential expectations and presumptions made by the management of the Business, consisting of the declarations regarding the factor to consider to be payable in connection with the closing of the Acquisition; the benefits of combining the companies of Pure Therapy and the Company; the terms of the Acquisition and the awaited timing of the business upgrade press release. Although the Business thinks that the expectations and assumptions on which such forward-looking information is based are affordable, excessive dependence must not be put on the forward-looking information due to the fact that the Company can give no assurance that they will prove to be appropriate. Forward-looking statements included in this news release are made as of the date of this press release. The Company disclaims any intent or responsibility to update publicly any forward-looking details, whether as an outcome of brand-new details, future events or outcomes or otherwise, besides as required by suitable securities laws. There can be no assurance that such statements will show to be precise and actual results and future occasions could vary materially from those anticipated in such statements. Essential factors that could trigger actual results to vary materially from the Company’s expectations include: that the Canadian Securities Exchange might not approve the Acquisition as proposed or at all; that the parties might not have the ability to please the conditions to closing of the Acquisition; negative market conditions; and other aspects beyond the control of the celebrations. The reader is warned that assumptions used in the preparation of any forward-looking details may show to be inaccurate. Occasions or scenarios may cause real outcomes to differ materially from those forecasted, as an outcome of numerous recognized and unidentified risks, unpredictabilities, and other factors, a lot of which are beyond the control of the Company. The reader is warned not to put excessive reliance on any forward-looking information included in this press release.
SOURCE BevCanna Enterprises Inc.