- BevCanna Enterprises (CSE:BEV) has signed an agreement with Capna Intellectual to bring Capna’s Bloom vape brand to Canada
- Under the definitive agreement, BevCanna will manufacture and sell Bloom branded products, such as cannabis concentrates and extracts, in Canada
- The company will also acquire exclusive licensing and manufacturing rights to certain Bloom product formats, technologies and branding assets
- The agreement has an initial term of five years, with automatic five-year renewal periods
- BevCanna’s share price is trading steady at C$0.34 per share
BevCanna Enterprises (CSE:BEV) has signed an agreement with Capna Intellectual to bring Capna’s Bloom vape brand to Canada.
Capna currently sells its Bloom brand products in over 300 retailers, including MedMen, Planet 13, Cookies, Caliva and Connected. Bloom products are available in the US states of California, Nevada, New Mexico, Oklahoma and Washington.
The definitive agreement with BevCanna will introduce the Bloom brand to Canada’s market, where there is ample opportunity for success.
Capna Intellectual’s CEO, Vitaly Mekk, commented on the opportunities of the agreement.
“Canada has a rich history with cannabis and Canadians want vapes that match the experience of smoking the plant. That’s what our goal is: deliver authentic cannabis experiences everywhere, every time,” he said.
Under the agreement, BevCanna will manufacture and sell Bloom branded products, such as cannabis concentrates and extracts, in Canada. This arrangement will depend upon the company receiving a license from Health Canada beforehand.
BevCanna will sell Bloom products in Canada under the name Cali-Bloom, in acknowledgement of its beginnings in California.
In addition, BevCanna will also acquire exclusive licensing and manufacturing rights to certain Bloom product formats, technologies and branding assets. Both parties have agreed to contribute to marketing and branding costs.
If Capna decides to apply its cannabis products to beverages, BevCanna will be the company’s exclusive beverage manufacturer in Canada. BevCanna will also hold rights of first refusal to be the exclusive beverage manufacturer in Europe or the US.
BevCanna has agreed to pay Capna a 38 per cent royalty of all net profits from products under the agreement.
The agreement has an initial term of five years, with automatic five-year renewal periods. This is, however, subject to the right of each party to terminate the agreement. Any termination would have to occur at least 90 days before the initial term or renewal term expires.
BevCanna’s Chief Strategic Officer, John Campbell, expressed the company’s excitement about bringing Bloom products to Canada’s market.
“Canadians are eager to see more vape options from trust-worthy retailers, and we’re happy to be able to provide that. We’re also seeing great synergies between the two companies.
“This agreement leverages BevCanna’s expertise in manufacturing infused cannabis products and Bloom’s reputation for creating safe, effective, appealing vapor cartridges and disposables. We’ve also discussed potential future opportunities to work together in other markets and product lines,” he added.
BevCanna’s share price is trading steady at $0.34 per share, as of 9:51am EDT.
