- BEV partners with Capna; signs LOI to manufacture, possess and sell vape products in Canada
- Company to sell products legally under license from Health Canada
- Cannabis, CBD and hemp-infused drinks market estimated to hit $1.4 billion by 2024 in the U.S.
BevCanna Enterprises Inc. (CSE: BEV) (OTC: BVNNF) (FRA: 7BC) has signed an LOI with high-profile cannabis operator Capna Intellectual Inc., the production partner of Bloom, to bring the Bloom brand, including its vaping products, to Canada. Both BEV and Capna are working towards a definitive agreement calling for BEV to manufacture, possess and sell Bloom cannabis products, such as vaping cartridges and disposables, as it receives licensing approval from Health Canada (http://ibn.fm/QsDn7).
The agreement also calls for BEV to sell other cannabis products including cannabis concentrates and extracts on behalf of Capna. In addition, BevCanna would be granted an exclusive license for certain technology and branding assets in Canada in connection with its manufacturing of cannabis products for Capna.
As part of the agreement, BEV subscribed for $250,000 of 135,747 preferred Seed Series Preferred Shares in the capital of Capna. Upon signing the definitive agreement, Bev expects to subscribe for another $250,000 in Capna shares.
“The JV with Bloom is an excellent opportunity for BevCanna to partner with a strong, reputable brand in the vape category,” said BevCanna chief communications officer Emma Andrews. “Canadians are eager to see more vape options from trustworthy retailers, and we’re excited to be able to provide that.”
In addition to BevCanna being the exclusive distributor for Capna in Canada, the partnership also calls for the company to be the exclusive distributor in California if Capna should enter the beverage market. BEV would also hold first right of refusal to be exclusive beverage manufacturer in any other U.S. state should Capna expand its products to the beverage space.
The move puts BEV at the intersection of two growing cannabis sectors: cannabis-infused beverages and vaping. In the United States, the cannabis-infused beverage market, including cannabis, CBD and hemp, is forecast to reach $1.4 billion by 2024, according to consultant Zenith Global (http://ibn.fm/1NvRD). That represents an incredible jump of almost 15 times from the estimated $89 million the category represented in 2018.
Vaping in Canada, now legal, is also seen as a potentially lucrative market for legal companies in this sector. The Cannabis Council of Canada estimates that the illicit market in vaping in Canada prior to legalization was an estimated $1 billion. As a legal market today, the space is regulated by Health Canada, which officially licenses producers of vape products, edibles, extracts and topical.
Based in British Columbia, Canada, BevCanna develops and manufactures cannabis-infused beverages and consumer products for white-label clients and in-house brands. The company’s common shares began trading on the Canadian Securities Exchange last July. BevCanna’s vision is to become a global leader in infused innovations, and its recent moves have positioned it well for growth in multiple burgeoning sectors.
For more information, visit the company’s website at www.BevCanna.com