CANADA –Naturo Group Investments, the company behind popular alkaline water brand Trace, is on the verge of being acquired by Cannabinoid-infused beverages maker, BevCanna Enterprises.
This is after BevCanna Enterprises signed a letter of intent (LOI) to acquire the Canadian beverage company in an all-stock deal estimated to be worth CA$6.5 million (about US$5 million).
The two companies have operated for the past three years under an exclusive partnership, including a master license agreement granting BevCanna access to Naturo’s 40,000-square-foot beverage manufacturing facility.
The proposed combination will create a fully licensed white-label beverage manufacturing and distribution company with a global multichannel distribution network of traditional retail and cannabis sales.
Marcello Leone, founder of Naturo and CEO of BevCanna says that the combination will create one of the largest consumer packaged goods, cannabis beverage and natural products players in the industry.
As well as the beverage facility, the deal includes 315 acres of cultivable land valued at C$10.4 million, beverage manufacturing equipment worth C$3.4 million, and an alkaline spring water source.
BevCanna will also take ownership of the Naturo flagship brand Trace, which offers, among other products, alkaline and sparkling waters which are reportedly sold in more than 3,000 Canadian retail stores.
The agreement would also eliminate future payment liabilities under BevCanna’s current lease agreement, royalty agreement, and manufacturing agreements with Naturo.
It is expected that upon completion of the transaction, the former securityholders of Naturo will own approximately 32% of the issued and outstanding common shares of BevCanna.
“We believe that the joining together of these two companies will be an unbeatable combination,” said Marcello Leone, founder of Naturo and CEO of BevCanna.
“Creating innovative beverages that consumers will love, whether mineral- or cannabis-based, wellness-focused or recreational, continues to be our passion.”
Closing of the proposed transaction is expected to be on or before the end of March 2021, subject to a number of conditions, including Canadian Securities Exchange acceptance.
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