BevCanna Enterprises expects acquisition of Naturo Group to close on or before January 20, 2021
The merger will catapult BevCanna to become the only fully licensed, in-house, and white-label beverage manufacturing company that distributes both conventional and cannabis-based beverage and wellness products
BevCanna Enterprises Inc () (QTCQB:BVNNF) (FRA:7BC) announced Thursday that its acquisition of Naturo Group Investments Inc will close on or before January 20, 2021.
In a statement, BevCanna said the merger will create a comprehensive health and wellness beverage and natural products company, one that generates significant value for both organizations and brings together two exceptionally experienced and innovative leadership teams.
“Bringing these two leaders within the Canadian beverage industry together will unlock significant potential for growth,” said Don Wood, an advisory board member of BevCanna and former CEO of Arrowhead Spring Water.
“Consumers continue to flock to health and wellness-focused products, and BevCanna’s wide range, including the innovative TRACE offering, with its proprietary plant-based mineral beverage, alkaline and sparkling beverages, and natural supplements, is a perfect fit for this progressive market,” he added.
The new BevCanna will now offer one of the most unique and diverse portfolios of beverage and wellness products within both the cannabis and plant-based categories.
Vancouver-based BevCanna said it will catapult the company into the unique position of becoming the only fully licensed, in-house, and white-label beverage manufacturing company that distributes both conventional and cannabis-based beverage and wellness products. The merger will provide it access to global, multi-channel distribution networks of traditional and cannabis sales channels.
“We’re very excited to finally realize our transformation into a comprehensive health and wellness beverage and natural products company,” said John Campbell, CSO of BevCanna. “The two companies have significant synergies that combine to create an exceptionally strong new organization, with a range of appealing products, an unmatched distribution network and a unique portfolio of assets.”
Key benefits that BevCanna will realize from the acquisition include:Creation of a “development to distribution” beverage manufacturing vertical for both traditional and cannabis-infused beverages and natural products; Direct ownership of a proprietary on-site natural alkaline spring water aquifer, valued at $18 million. As water resources become increasingly scarcer, BevCanna expects that the proprietary resource will contribute to a strengthened balance sheet and its unique positioning within the exploding plant-based and cannabis sectors; An established and growing mass-market distribution network of over 3,000 retail points, via Naturo’s market-leading TRACE plant-based fulvic and humic mineral beverage. TRACE is sold across the country through Canadian retailers, with select international agreements and partnerships under review; Along with their nationally distributed alkaline and sparkling waters, TRACE is expanding its product selection to nutraceuticals and is incorporating additional nutraceuticals and herbal remedies, including cannabinoids, adaptogens, and nootropics, into its products to be sold in domestic and international markets; TRACE’s proprietary Health Canada-approved plant-based fulvic and humic formulation – a category which is expanding across North America and globally; and Naturo’s 315-acres of outdoor cultivable land and 40,000 square foot high-capacity beverage facility valued at $10.4 million is optimized for both traditional and cannabis-infused beverage manufacture. Its beverage manufacturing equipment is valued at $3.4 million (as of year-end).
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