- BevCanna (BEV) has signed a non-binding letter of intent with Mota Ventures to introduce its products to the European market
- Each company will hold a 50 per cent stake in the joint venture
- The agreement has an initial term of five years, with the option for a further five-year renewal
- BevCanna also announced a marketing and investor relations agreement with Aktiencheck.de AG
- Shares in the company are currently up 9.86 per cent to C$0.39, with a market cap of C$18.42 million
BevCanna (BEV) has signed a letter of intent with Mota Ventures to manufacture, market and distribute BevCanna-branded drinks.
Each company will hold a 50 per cent stake in the joint venture, with an even split of associated costs.
In an effort to gain traction in the European market, BevCanna has agreed to provide house brands, formulations, proprietary IP for its water-soluble powders and manufacturing expertise.
Likewise, Mota Ventures will provide European-based production, marketing and distribution infrastructure.
The joint venture will have an initial term of five years and a subsequent five-year renewal option.
The initial five-year period is expected to be largely occupied by a comprehensive launch program, with commercial regions expected to include Spain, Portugal, Austria, Germany, France and the UK.
BevCanna and Mota Ventures will work collaboratively to determine the optimum product launch mix and timing for each specific market, based on existing offerings and market dynamics.
“This agreement will leverage BevCanna’s expertise in manufacturing infused cannabinoid products and Mota’s reputation for creating safe, effective, high quality CBD products,” said BevCanna’s Chief Strategy Officer, John Campbell.
“The European health and wellness market is growing vastly, and Europeans are eager to see more reputable North American brands and options from trust-worthy producers, and we’re excited to be able to provide that.”
A definitive agreement is expected to be formulated over the next 30 days and is subject to a number of conditions, including due diligence by both companies, demonstrated ability for BevCanna to transfer its trademarks to the European market, and approval from each party’s Board of Directors.
Further to the joint venture announcement, BevCanna also revealed that it has entered into a marketing and investor relation agreement with Aktiencheck.de AG.
The consultancy will provide corporate branding, marketing, online corporate communications and investor relations services for a term of one month.
Total consideration for the one-month period is valued at approximately C$73,000.
Shares in BevCanna are currently up 9.86 per cent to C$0.39, with a market cap of C$18.42 million.