The merger of the two Canadian beverage leaders in an all-stock deal will form a powerhouse in the plant-based mineral and cannabis beverage sectors
BevCanna Enterprises Inc () (OTCQB:BVNNF) (FRA:7BC) announced over the weekend that it has executed a definitive agreement with its long-time partner, Naturo Group Investments Inc to purchase all the issued and outstanding securities of the privately-held beverage group in an all-stock deal.
Vancouver-based infused cannabis drinks giant BevCanna said that once the deal is completed Naturo will become its wholly-owned subsidiary. To complete the transaction, BevCanna will issue 50,000,000 common shares of the company to acquire all the outstanding shares of Naturo. The deal will naturally require CSE approval, due diligence investigations by BevCanna, and shareholder approval by Naturo. BevCanna will be responsible for all Naturo’s assets and liabilities once the deal is completed.
“The joining together of these two companies will be an unbeatable combination,” said Marcello Leone, founder of Naturo and CEO of BevCanna.
“BevCanna is evolving into a comprehensive health and wellness company, and this combination accelerates that evolution. We’ll now offer one of the most unique and diverse portfolios of beverage and wellness products within both the cannabis and the fulvic and humic mineral plant-based categories.”
Leone noted that the merger creates “significant value” to both organizations and brings together two “exceptionally experienced teams,” forming one of the most innovative beverage and natural health products companies.
The combination will create the only fully licensed, in-house and white-label beverage manufacturing company that distributes both conventional and cannabis-based beverage and wellness products. The newly formed company will now have access to global, multi-channel distribution networks of traditional and cannabis sales channels.
BevCanna will take ownership of Naturo’s 40,000-square feet beverage facility, 315-acres of outdoor cultivatable land valued at $10.4 million, beverage manufacturing equipment valued at $3.4 million, and a proprietary Health Canada approved fulvic and humic plant-based mineral formulation.
In addition, BevCanna will take possession of one of Naturo’s most valuable assets, their onsite alkaline spring water source, independently valued at $18 million. As water resources become increasingly scarce, BevCanna expects that the proprietary resource will contribute to a strengthened balance sheet and to BevCanna’s unique positioning within the exploding plant-based and cannabis sectors.
BevCanna will also own Naturo flagship brand TRACE, which is sold in more than 3,000 Canadian retailers, with select international agreements and partnerships under review. Along with their nationally distributed alkaline and sparkling waters, TRACE is expanding into nutraceuticals and herbal remedies, including cannabinoids, adaptogens, and nootropics, to be sold in the domestic and international markets.
According to Naturo’s latest independent estimate pricing report, the company’s enterprise value is estimated between C$38 million to C$42 million.
Contact the author Uttara Choudhury at [email protected]
Follow her on Twitter: @UttaraProactive
