CANADA – BevCanna Enterprises, manufacture of infused cannabis beverages, is set to acquire Naturally Pure Therapy Products, a natural health product ecommerce retailer, for a total consideration of CAD 6 million (US$4.58 million).
The acquisition will provide BevCanna with an ecommerce brand and platform to further expand and launch its own propriety hemp-based products directly into the global health and wellness market.
Pure Therapy is a direct-to-consumer ecommerce company that sells a range of natural health products such as nutraceutical and hemp-based cannabidiol products throughout North America and Western Europe.
As a result of the deal, BevCanna will gain access to Pure Therapy’s list of over 22,000 customers. The retailer reported unaudited 2019 gross revenues of CAD 4.77 million (US$3.64 million).
“The Pure Therapy business is a very synergistic addition to 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,”John Campbell – chief strategic officer BevCanna
Following the transaction, BevCanna estimates immediate growth in 2020 through new product integration and by accelerating the growth of the existing products line, utilising Pure Therapy’s ecommerce marketing expertise.
“The Pure Therapy business is a very synergistic addition to 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,” 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 of the deal, BevCanna has agreed to issue 30 million of its shares to the shareholders of Pure Therapy in exchange for all the issues and outstanding securities of Pure Therapy, in a deal worth CAD 6 million (US$4.58 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.
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