The companies are negotiating a joint venture to sell water-soluble CBD powder and ready-to-drink beverages
Corp () (OTCMKTS:PEMTF) is teaming up with BevCanna Enterprises Inc () (OTCMKTS:BVNNF) on a joint venture that would allow Mota to market and sell BevCanna's CBD products in Europe.
The companies have signed a letter of intent to negotiate a venture in which BevCanna will contribute its in-house brands and formulations, as well as its proprietary intellectual property for water-soluble powders. Mota, on its part, will arrange manufacturing, marketing and distribution in Europe, with a particular emphasis on Spain, Portugal, Austria, Germany, France and the UK.
The companies will work together to launch a CBD-infused beverage portfolio, including both powder and ready-to-drink formats. Mota and BevCanna will share ownership of the venture equally and take on any costs together.
READ: Mota Ventures expects significant growth at new subsidiary First Class CBD
"The rising demand for health and wellness beverages that are infused with CBD globally is immense,” CEO Joel Shacker said in a statement. “We are at the inception of the revolution in the global CBD infused beverage arena. We feel that by positioning ourselves to be early adopters in the European market we are poised to capture significant market share in an emerging industry."
According to estimates from Zenith Global, the CBD-infused drinks market will reach $1.4 billion by 2023 in the US alone.
Both parties still have to complete additional due diligence before the venture is officially formed, said.
Mota is a low-cost producer and exporter of CBD products. Its 2.5-hectare site located in Colombia has optimal year-round growing conditions and access to all the necessary infrastructure.
BevCanna has multiple revenue streams, including house brands, white label bottling, and is actively pursuing acquisitions of brands. The firm utilizes patented technology to produce premium tasting, water-soluble cannabinoid infusions using THC and CBD from both cannabis and hemp.
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