Little West’s CBD offering combine local produce with naturally derived CBD, making it one of the few truly natural CBD beverages on the market
() (OTCMKTS:BVNNF) is adding a new line of premium juices to its beverage portfolio through the acquisition of Little West Holdings LLC.
The beverage company announced Wednesday that it had signed a non-binding letter of intent to acquire the West Coast cold-pressed juice company, which currently boasts a range of juices, including a line of hemp-derived CBD drinks.
Little West’s CBD offering combines local produce with naturally derived CBD, making it one of the few truly natural CBD beverages on the market.
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"Little West's line of cold-pressed juices will be a fantastic addition to our portfolio of cannabis-infused beverages," said Emma Andrews, chief commercialization officer at BevCanna.
"Their products are created with a focus on health and wellness, using the highest-quality, freshest ingredients, and the taste is incredible. There are a number of synergies with BevCanna's range of infused beverages, and we're excited to soon be able to offer Little West juices to our customers."
The premise and intention behind the Little West brand aligns with BevCanna's vision to promote wellbeing and quality of life through its products, Andrews told investors.
"BevCanna will also be able to leverage Little West's unique points of distribution amongst 'tastemaker' accounts in the food service and hospitality channels, as we look to bring additional CBD infused brands and products to market," Andrews said.
Currently, Little West's distribution includes a number of high-end hotels, retailers, restaurants and grocery chains, including Ace Hotels, Viceroy Hotels, WeWork, Apple Headquarters, La Colombe, Alfred Coffee, Bristol Farms, and Gelsons Market.
On shelves in 2020
Under the deal’s terms, BevCanna will pay Little West’s shareholders an aggregate of US$1 million in cash and $3 million in BevCanna shares priced at C$0.56 per share. BevCanna will also issue additional shares to Little West shareholders, should certain targets be reached.
BevCanna said it expects to introduce its own water-based hemp-derived CBD infused product lines for sale through Little West's distribution network, starting in 2020.
The acquisition is expected to close within 45 days.
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