- BevCanna Enterprises (CSE:BEV) has signed a licensing agreement with fellow cannabis beverage company, Keef Brands
- Under the agreement, BevCanna will act as the exclusive Canadian licensee and co-packer for Keef’s line of beverages
- In addition, Keef will co-pack and distribute BevCanna’s own range of beverages throughout the US
- As part of the deal, BevCanna will also invest C$210,525.75 in Keef via a convertible debenture offering
- BevCanna Enterprises (BEV) is trading steady at $0.33 per share, with a market cap of $15.43 million
BevCanna Enterprises (CSE:BEV) has signed a licensing agreement with fellow cannabis beverage company, Keef Brands.
Per the agreement, dated April 30, BevCanna will become the exclusive Canadian licensee and co-packer for Keef’s beverage line.
The company will use its experience in developing and launching drink products to maintain compliance with Health Canada. It will also undertake sales and distribution requirements.
Similarly, through its network of manufacturing partners, BevCanna has engaged Keef to co-pack and distribute BevCanna products throughout the US. Keef’s distribution network includes thousands of dispensaries and delivery services across Colorado, California, Arizona, Nevada, Michigan, Oklahoma, and Puerto Rico.
BevCanna’s Chief Strategy Officer, John Campbell, said that the partnership with Keef is a fantastic opportunity for the company.
“Keef’s robust US co-pack and distribution network will be a significant asset to BevCanna’s expansion plans in the US. BevCanna’s expertise in the Canadian infused beverage market will build Keef’s Canadian presence.
“It’s a strong combination, with excellent potential for both companies,” he added.
Under its Canadian responsibilities, BevCanna will purchase certain packaging, ingredients, and other non-cannabis or THC-based components from Keef, to manufacture the licensed products.
The deal will have an initial term of three years, with a subsequent three-year renewal to be decided by BevCanna. However, if the company has not managed to secure the necessary Health Canada licenses by December 31, 2020, Keef may terminate the agreement.
Keef Brands’ CEO, Erik Knutson, called BevCanna an ideal partner for the company to move forward with its North American expansion.
“The team’s expertise in developing and launching appealing, innovative infused beverages is exactly what we’ve been seeking. Their experience in working within the Health Canada regulatory environment will be invaluable to Keef,” he concluded.
In addition to the licensing agreement, BevCanna has agreed to invest C$210,525.75 in Keef through a convertible debenture offering. The cash investment will be released to Keef in a series of four tranches between April 30 and June 30 this year.
BevCanna Enterprises (BEV) is trading steady at $0.33 per share, as of 11:46pm EDT.