Wednesday 25 November 2020

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

The LOI provides that the company will acquire all of Naturo's Securities in exchange for the issuance of approximately 50m common shares of the Company at a deemed price of USD 0.40 per consideration share.

Upon completion of the Transaction, Naturo will become a wholly-owned subsidiary of the company and the company will carry on the combined business of Naturo and the company.

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.