BevCanna Enterprises Inc. has entered into a non-binding letter of intent (the “LOI”) to manufacture white-label CBD and THC-infused beverages for rising British Columbian beverage brand State B Beverage Co. Launched by well-known B.C. mixologist and Master Drink Maker Kelly Ann Woods, State B is part of the Brujera Elixirs Incorporated house of brands which currently includes Boozewitch (sober-curious mixers) and three additional functional human performance drinks in development.
Under the proposed agreement, BevCanna will leverage its extensive experience developing and launching beverages in the Canadian market to create the new State B beverage concept, which will be a merge of functional beverages and cannabis drinks. BevCanna will also maintain responsibility for regulatory compliance with Health Canada. State B will hold responsibility for national sales and marketing efforts to launch the product line in Canada. The white label agreement will be for an initial term of three years with a subsequent three-year renewal option.
“The State B brand is an intriguing new concept, and we’re excited to be the ones to launch the new line,” said John Campbell, Chief Strategic Officer at BevCanna. “Our plan to create a sustainable consistent revenue stream through our white-label portfolio is well on track, and adding the State B brand will add to the momentum.”
“BevCanna’s experience in formulating functional yet very appealing beverages was exactly what we were looking for in a white-label partner,” said Kelly Ann Woods, CEO of Brujera. “Their success in bringing great concepts to life, while maintaining strict regulatory compliance, convinced us that they were the right partner to work with on our new brand.”
The Company also announces that it has granted 500,000 stock options to purchase up to 500,000 common shares of the Company to a consultant of the Company. All 500,000 options granted vest immediately upon the grant and are exercisable for a period of 2 years from the date of grant at a price of $0.30 per common share. The options and the common shares issuable upon the exercise of the options held by the optionee are subject to a hold period of four months from the date of grant of the stock options. None of the securities acquired in the transactions noted above will be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This news release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.
BevCanna Enterprises Inc. develops and manufactures cannabinoid-infused beverages and consumer products for in-house brands and white label clients. Based in British Columbia, Canada, BevCanna has a 292-acre outdoor cultivation site in the fertile Okanagan Valley and the exclusive rights to a pristine spring water aquifer, as well as a world-class 40,000-square-foot, HACCP certified manufacturing facility, with a current bottling capacity of up to 210M bottles per annum.