- BevCanna Enterprises (CSE:BEV) has signed a non-binding letter of intent to partner with cannabis beverage brand Calexo
- BevCanna will become the exclusive Canadian manufacturing partner for Calexo’s newly-launched line of beverages
- Each party will share in the profits under an agreement with an initial term of five years
- BevCanna Enterprises (BEV) is down 7.02 per cent to C$0.26, with a market cap of $12.39 million
BevCanna Enterprises (CSE:BEV) has signed a non-binding letter of intent to partner with cannabis beverage brand Calexo.
Based in Los Angeles, Calexo offers a range of precisely-dosed THC-infused beverages. It launched its first line of drinks earlier this year, and has plans to expand statewide in California.
Under the terms of the agreement, BevCanna will act as the exclusive Canadian manufacturing partner for Calexo’s products. The company will leverage its experience in developing and launching beverages in the Canadian market, as well as its existing sales and distribution network.
In return, Calexo will provide BevCanna with access to its current and future US distribution network for future product launches.
The partnership will be structured under a profit share joint venture agreement, with an initial term of five years. The parties may also renew the agreement for a further five years.
BevCanna’s Chief Strategic Officer, John Campbell, said that the partnership is an exciting opportunity for both companies.
“Calexo combines unique branding, all-natural ingredients and flavour-forward formulations to create elegant, social beverages. These drinks represent the type of high-quality products that BevCanna is committed to bringing to the Canadian market.
“We look forward to a prosperous partnership that results in continued growth for both partners,” he added.
The agreement is subject to due diligence investigations by both parties. Calexo must also demonstrate that its trademarks are transferable to the Canadian market before the parties sign the definitive agreement.
BevCanna (BEV) is currently down 7.02 per cent to C$0.26 at 10:14am EST.