Tuesday 23 February 2021

Canadian cannabis-infused beverages company, BevCanna Enterprises Inc. (CSE: BEV) (Q: BVNNF) (FSE: 7BC) has closed the acquisition of all issued and outstanding shares of Canada-based beverage manufacturer Naturo Group Investments Inc., the company said.

Under the deal, the company acquired all of Naturo's Securities in exchange for the issuance of approximately 50m common shares of the Company at a deemed price of CDN 0.40 per consideration share.

Naturo's 315-acres of outdoor cultivable land and 40,000 sq. ft. high-capacity beverage facility valued at CDN 10.4m, optimized for both traditional and cannabis-infused beverage manufacturing.

No finder's fee was paid in connection with the acquisition.

BevCanna and Naturo have operated for the past three years under an exclusive partnership, including a master license agreement by which BevCanna has exclusive access to Naturo's 40,000 sq. ft. beverage manufacturing facility, on-site alkaline spring water source, 315-acres of land for outdoor cultivation purposes and proprietary Health Canada approved fulvic and humic plant-based mineral formulation.

The proposed combination will create a licensed white-label beverage manufacturing and distribution company, with a global multi-channel distribution network of traditional retail and cannabis sales channels.

BevCanna will own the Naturo flagship brand, TRACE, which currently enjoys a leadership position within the Canadian fulvic/humic category.

Naturo Group Investments Inc. develops and manufactures beverages and consumer products for in--house brands and white label clients. Naturo owns and operates nationally distributed house brands across Canada.

BevCanna Enterprises Inc. develops and manufactures cannabinoid--infused beverages and consumer products for in--house brands and white label clients.