BevCanna Enterprises Inc., an emerging manufacturer of infused cannabis beverages has acquired Carmanah Craft Corp. Pursuant to a share exchange agreement (the “Agreement“) dated January 13, 2020 with Carmanah and each of the shareholders of Carmanah, the Company has completed the acquisition of all the issued and outstanding securities of Carmanah and the business of Carmanah (the “Acquisition“).
The acquisition of the cannabis genetics expert gives BevCanna access to an extensive library of cannabis genetics, including 50 premium cannabis strains and over 25 types of cannabis seeds, including six auto flower seed varieties. There is an excess of 50 strains by clone and 250,000 cannabis seeds ranging from high THC to high CBD. Additionally, a large portion of the genetics are outdoor-specific strains that originated in California, which boasts a very similar climatic zone to our operations in the Okanagan and are expected to increase yields. The library of genetics includes many of the top mold resistant, outdoor, high yielding, auto flower seeds, many of which are anticipated at 2kg+ of yield per plant. With the addition of such a substantial auto flower library, the harvest times will start much earlier allowing for much more organized final processing.
“This deal will dramatically increase our overall cannabis yield projections,” said Joey Bedard-Brunet, Head of Cultivation at BevCanna. “Together with the recently announced increase in our outdoor cannabis cultivable land to almost 300 acres, the acquisition of Carmanah’s proven outdoor genetics will allow BevCanna to develop into one of the largest outdoor cannabis cultivators in Canada.” said John Campbell, Chief Strategy Officer at BevCanna.
In consideration for the Acquisition, the Company issued 8,941,176 common shares in the capital of the Company to the shareholders of Carmanah at a deemed price of $0.425 per share. Closing of the Acquisition was conditional upon receipt by the Company of a confidential third-party valuation valuing the shares of Carmanah as being equal to or greater than the purchase price. No finder’s fee was paid in connection with the Acquisition. The Acquisition is an arm’s length transaction.
BevCanna Enterprises Inc. develops and manufactures cannabinoid-infused beverages and consumer products for in-house brands and white label clients.