BevCanna Signs LOI with Californian Cannabis Beverage Brand Calexo

Published: March 27, 2020

BevCanna Signs LOI with Californian Cannabis Beverage Brand Calexo

BevCanna Enterprises Inc. has entered into a non-binding letter of intent (the “LOI”) to partner with rising California cannabis beverage brand Calexo. Under the proposed agreement, BevCanna will become the exclusive Canadian manufacturing partner for the newly-launched Calexo line of beverages.

BevCanna will leverage its extensive experience in developing and launching beverages in the Canadian market to maintain responsibility and compliance with Health Canada, as well as all national sales and distribution efforts related to the joint venture (JV). The JV will be structured as a profit share joint venture agreement, and the maintenance of exclusivity is subject to mutually agreed-upon forecast milestones being met. The agreement will be for an initial term of five years with a subsequent five-year renewal option.

In addition to the Canadian manufacturing arrangement, Calexo will also provide BevCanna with access to its current and future U.S. distribution networks for future product launches. BevCanna’s current U.S. plans include the upcoming Californian launches of their ready-to-drink and powdered beverage mix products.

“The partnership with Calexo is an exciting opportunity for BevCanna,” said John Campbell, Chief Strategic Officer at BevCanna. “Calexo combines unique branding, all-natural ingredients and flavour-forward formulations to create elegant, social beverages. These drinks represent the type of high-quality products that BevCanna is committed to bringing to the Canadian market. We look forward to a prosperous partnership that results in continued growth for both partners.”

Offered in a choice of two flavors, Citrus Rose and Cucumber Citrón, Calexo is now available via delivery throughout Los Angeles from Sweet Flower Melrose or Sweet Flower Arts District dispensaries. Product availability will soon expand statewide in California. Made with all-natural juices, botanicals, and nano-emulsified THC (10mg per 22oz. bottle), Calexo beverages are designed for sharing, and are precisely dosed for an easy-to-control, uplifting experience.

The agreement is subject to satisfactory completion of due diligence investigations by each of the partners into the other partner’s business, Calexo demonstrating that its trademarks are transferable to the Canadian market, negotiation and execution of a definitive agreement, and approval by each partner’s board of directors.

BevCanna Enterprises Inc. develops and manufactures cannabinoid-infused beverages and consumer products for in-house brands and white label clients. With decades of experience creating, branding and distributing iconic brands that resonate with consumers on a global scale, the team demonstrates an expertise unmatched in the emerging cannabis beverage category. 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.