BevCanna Enterprises Inc. entered into a definitive joint venture agreement with Mota Ventures Corp. to exclusively distribute BevCanna’s hemp-derived cannabidiol (CBD) products in the European market. The Joint Venture will initially launch BevCanna’s “LEV” line of fruit-forward lightly sparkling CBD-infused spring water beverages and water-soluble powders. The beverages will also utilize BevCanna’s proprietary method of nano-delivery of cannabinoids, a unique technology that produces a rapid onset time for the cannabinoids. The JV will launch additional products over the life of the five-year agreement.
Under the agreement, BevCanna and Mota have agreed to share equal ownership in the Joint Venture and be jointly responsible for developing and funding its operations. In addition to capital, BevCanna has agreed to contribute proprietary brands, product formulations, formulas for nano-encapsulated water-soluble powders, and marketing and manufacturing expertise to the Joint Venture. Mota has agreed to provide manufacturing, marketing and distribution infrastructure in the European market.
“We’re eager to launch our CBD products in the European market,” said John Campbell, Chief Strategy Officer of BevCanna. “Infused beverages are a great way to enjoy cannabidiol in a familiar, appealing consumption format, while also being non-carcinogenic and more socially friendly than other formats. We’re also excited to employ our proprietary nano-technology in our beverages, which is more bioavailable and produces a rapid onset time.”
Finalization of the Joint Venture remains subject to the establishment of a joint venture company by the parties, entry into a shareholders’ agreement and credit facility arrangement between the two parties, and the licensing and registration of intellectual property for use in Europe.