The plan is for CannGrow to operate the cultivation on BevCanna's plot of land in British Columbia
. () (OTCMKTS:BVNNF) has signed a letter of intent with Clearwater CannGrow to produce sun-grown organic cannabis on 130 acres of its land.
The plan, the company said in a statement Wednesday, is for CannGrow to plan and operate the cultivation on BevCanna’s plot of land near Osoyoos, British Columbia. The two companies expect to reach a definitive agreement on a three-year term within two weeks.
CannGrow is led by Joey Bedard-Brunet, a respected agricultural consultant, who drew praise from BevCanna Chief Strategic Officer John Campbell.
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“Joey is the perfect candidate,” Campbell said in a statement. “He has the experience with [Marijuana Medical Access Regulations] start-up cannabis and hemp operations that we’ve been looking for, and expertise across agricultural industries. We’re excited to get the operation underway.”
BevCanna expects the venture to produce 100,000 kilograms of biomass and 10,000 kilograms of pure cannabinoids in the finished extract. In the long run, the company said it would potentially expand the partnership to beyond the 130-site to another BC location.
The cannabis-infused beverage producer said it expects to file for a cultivation license by the end of November and hopes to plant the first crop the following Spring. If all goes to plan, the first harvest will be reaped in Fall 2020.
BevCanna stock jumped 1.7% to C$0.60 Wednesday on Bay Street and 7% to US$0.46 in New York.
—Updated to include stock movement—
Contact Andrew Kessel at [email protected]
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