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Be the first with the news that moves the market- BevCanna Enterprises (CSE:BEV) has doubled its production facility in preparation for full-scale commercialization this year
- Under lease amendments signed in August 2018 with Naturo Investments, the facility has been expanded from 5,235 sq ft to 10,378 sq ft
- BevCanna has subsequently paid Naturo C$600,000 cash and C$653,400 in common shares at 42.5 cents each
- Despite stringent regulatory barriers, the company is hoping to receive its standard processing license soon
- Shares in BevCanna are currently up 23.81 per cent to C$0.52, with a market cap of C$24.32 million
BevCanna Enterprises (CSE:BEV) has doubled the size of its production facility in preparation for full-scale commercialization this year.
The company is an up-and-comer in the cannabis-infused beverage industry, and expects to be receiving its standard processing license in the near future.
An agreement was signed in June 2018 with Naturo Investments, pertaining to BevCanna’s lease of the production facility.
The agreement was subsequently amended in August 2018 to include provisions for expansion. It also outlined relevant increases in consideration paid to Naturo Investments if such an event should occur.
Pursuant to the amendments that were made, BevCanna has now increased its original 5,235 sq ft production facility to 10,378 sq ft.
The company has also agreed to pay an additional C$600,000 in cash to Naturo Investments, as well as C$653,400 in common shares at 42.5 cents each.
“This expansion is an exciting step for BevCanna,” said BevCanna Chief Strategy Officer, John Campbell.
“We expect to receive our standard processing license imminently, and we’re preparing to initiate full-scale production in the coming months.”
The company says that it has seen significant consumer and industry response to the growing cannabis-infused beverage market.
However, stringent regulatory barriers have been proving difficult to overcome for many companies looking to expand in the industry.
Despite the challenges, BevCanna is remaining positive, confirming that beverages are at the heart of their core expertise.
“BevCanna’s world-class bottling facility has been designed with maximum flexibility to cover a wide array of bottle sizes and form factors to allow the company to fully serve its white label client needs,” added Mr. Campbell.
Shares in the company have responded well to the news, up 23.81 per cent to C$0.52, with a market cap of C$24.32 million.
