BevCanna Enterprises to buy e-commerce retailer Naturally Pure Therapy Products
Pure Therapy is a proven e-commerce brand with an extensive list of over 22,000 customers
BevCanna Enterprises Inc () () is to acquire natural health e-commerce group Naturally Pure Therapy Products Corp in a C$6 million deal, which will enable it to launch its hemp-based CBD drinks into the US and other global markets.
Pure Therapy is a proven e-commerce brand with an extensive list of over 22,000 customers to which it sells a range of natural health products, including nutraceutical and hemp-based cannabidiol products.
It posted unaudited gross revenue in calendar 2019 of C$4,768,000 and a net profit of C$218,000.
"The brand has a substantial existing customer base and a very powerful direct sales platform in which we can significantly leverage through increased marketing spend, and new product integration into an already proven model," said John Campbell, chief strategic officer at BevCanna.
"Specifically, the acquisition will serve as a conduit to launch our hemp-based CBD beverages into the United States and other global markets. We'll be able to immediately access their existing customer base and will accelerate the growth of the site by adding more high-margin value-added products and enhancing the branding direction."
Under the terms, BevCanna has agreed to issue 30 million of its shares to shareholders of Pure Therapy in exchange for all the issued and outstanding securities of Pure Therapy at a deemed price of C$0.20 per consideration share for a total deemed value of C$6 million.
BevCanna added in the statement that it aims to provide a corporate update, on or before September 15 this year, which "will provide direction to its shareholders on operations, licensing, and strategic focus for the remainder of 2020".
Based in British Columbia, BevCanna has a 292-acre outdoor cultivation site in the Okanagan Valley and the exclusive rights to a pristine spring water aquifer, access to a world-class 40,000 square feet, HACCP certified manufacturing facility, with a current bottling capacity of up to 210 million bottles per annum.
BevCanna aims to be a global leader in infused innovations.
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