BevCanna Enterprises Inc. - CEO, Marcello Leone
CEO, Marcello Leone
Source: The Globe and Mail
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  • Cannabis beverage developer, BevCanna Enterprises (CSE:BEV) has signed a distribution letter of intent with Argentia Gold to bring its products to the Atlantic provinces
  • Under the non-binding agreement, Argentia will distribute and sell BevCanna’s products in Newfoundland, Prince Edward Island and New Brunswick
  • As consideration, BevCanna will pay a service fee to Argentia of 15 per cent, with up to a 5 per cent bonus
  • A definitive agreement is expected to be formed within the next 45 days
  • BevCanna Enterprises (BEV) is currently down 1.54 per cent to C$0.32 per share, with a market cap of $14.96 million

Cannabis beverage developer BevCanna Enterprises (CSE:BEV) has signed a distribution letter of intent with Argentia Gold to bring its products to the Atlantic provinces.

Argentia, based in Newfoundland and Labrador, is a licensed cannabis producer, operating on a former US naval base that encompasses approximately 80,000 square feet on 10 acres of land.

Under the terms of the non-binding agreement, Argentia will distribute and sell BevCanna’s cannabis-infused beverages across Newfoundland, Prince Edward Island and New Brunswick.

These provinces represent some of the most significant demographics in terms of cannabis consumption. BevCanna says that Argentia was chosen for their in-depth knowledge of the region’s industry, as well as their associations with almost 50 licensed retailers.

John Campbell, Chief Strategic Officer at BevCanna, said Argentia is an ideal partner in the burgeoning region.

“They have an unparalleled knowledge of the regional cannabis landscape and a detailed understanding of the distribution network.

“They also have excellent relationships with the provincial bodies in these provinces, which will assist us as we focus on building our presence in the region,” he added.

BevCanna will provide the finished cannabis and cannabis-extract products, while Argentia will offer supply chain, distribution, and sales infrastructure and services.

As consideration for Argentia’s involvement, BevCanna will pay a service fee of 15 per cent, with a potential bonus of up to 5 per cent, depending on the satisfaction of previously agreed upon milestones.

A definitive agreement is expected to be signed within the next 45 days.

Dave Thomson, Head of Business Development at Argentia Gold, said the company is excited to bring BevCanna’s innovative and diverse beverage portfolio to the region.

“We are laser focused on bringing the same high-quality, in-demand products that are being sold in the larger Canadian markets to the Atlantic provinces, and we expect BevCanna’s upcoming line of beverages to be extremely popular with consumers,” he said.

BevCanna Enterprises (BEV) is currently down 1.54 per cent to C$0.32 per share at 12:27am EDT.

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