Keef Brands Takes Equity Stake in Emerging Cannabis-Infused Drinks Company BevCanna
Colorado-based Keef Brands has acquired an equity position in Canada’s BevCanna Enterprises, a manufacturer of cannabis-infused drinks.
The deal builds on an earlier licensing arrangement that enabled both companies to expand production and distribution in their respective countries.
Under the terms of the transaction, BevCanna will convert previously-issued debt for 182,500 common shares at a price of 70 cents per share.
The deal is valued at approximately $127,750.
Earlier this year, BevCanna said it would invest $150,000 in Keef Brands in four separate tranches.
“We’re extremely pleased with the confidence that Keef has shown in both BevCanna’s future prospects and in our mutual relationship,” BevCanna chief strategy officer John Campbell said via a news release. “We see a great future for the two companies working together, with both companies benefiting from the other’s market expertise and distribution networks, and we’re happy that Keef sees the same potential.”
The equity exchange comes just two weeks after BevCanna announced plans to acquire Naturo Group in an all-stock deal that creates a robust Canadian beverage group with over $35 million in assets and interests in both the conventional and cannabis-based beverage categories.
In a news release earlier this month, Naturo founder Marcello Leone said the merged companies would be an “unbeatable combination.”
“BevCanna is evolving into a comprehensive health and wellness company, and this combination accelerates that evolution,” he said. “We’ll now offer one of the most unique and diverse portfolios of beverage and wellness products within both the cannabis and the fulvic and humic mineral plant-based categories.”
Upon closing, BevCanna will take ownership of Naturo’s 40,000 sq. ft. beverage manufacturing facility that is capable of processing 210 million bottles per year.
According to cannabis data firm Headset, THC-infused drink sales in the U.S. are expected to grow from $240 million in 2020 to $2.5 billion in 2025. Globally, the cannabis-infused drinks market could be worth up to $5.8 billion, according to a recent Prohibition Partners study.