VANCOUVER: BevCanna Enterprises Inc. entered into a share exchange agreement to acquire natural health product company Naturally Pure Therapy Products Corp., a news release said.
Pursuant to the Agreement, BevCanna has agreed to issue 30 million common shares in the capital of the Company to the shareholders of Pure Therapy in exchange for all the issued and outstanding securities of Pure Therapy at a deemed price of $0.20 per Consideration Share for total deemed consideration of $6.0 million.
Pure Therapy is a direct-to-consumer e-commerce company selling a range of natural health products, including nutraceutical and hemp-based cannabidiol products throughout North America and Western Europe.
Pure Therapy’s extensive catalogue of formulations are proprietary and professionally crafted based on market demand and product quality. Every product manufactured is third-party tested for purity and manufactured in GMP (good manufacturing practices) certified facilities.
The Acquisition will provide BevCanna a proven e-commerce brand and platform to further expand and launch its own propriety products directly into the global health and wellness market, including the burgeoning US CBD market.
Pure Therapy brings an extensive list of over 22,000 customers that it has acquired since 2017. The brand has achieved unaudited calendar year 2019 gross revenues of C$4,768,000, and a net profit of C$218,000. BevCanna projects immediate growth in the brand in 2020 and beyond achieved through new product integration, and by accelerating the growth of the existing natural health products line, leveraging the extensive e-commerce marketing expertise of the existing Pure Therapy team.
The current mix of subscription-based and traditional sales revenue will also provide a strong recurring revenue stream for BevCanna.
“The Pure Therapy business is a very synergistic addition to BevCanna,” commented John Campbell, Chief Strategic Officer at BevCanna.
“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. 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.”
BevCanna Enterprises Inc. (CSE: BEV, Q:BVNNF, FSE:7BC) BevCanna Enterprises Inc. develops and manufactures cannabinoid–infused beverages and consumer products for in–house brands and white label clients. With decades of experience creating, branding and distributing iconic brands that have resonated with consumers on a global scale, the team demonstrates an expertise unmatched in the emerging cannabis beverage category.
Based in British Columbia, Canada, BevCanna owns a 298–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–foot, HACCP certified manufacturing facility, with a current bottling capacity of up to 210M bottles per annum.
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