Cann American Corp. plans to increase its investment in Fly Beverage Corp.
As announced in May, Cann American Corp. has initiated an equity investment with Fly Beverage Corp., a cannabis-infused beverage company serving the California dispensary market.
Fly Beverage has several lines of infused beverages including Nectr, a 10mg THC-infused sparkling water in multiple flavors. Fly Beverage also operates Matt’s High Soda, which recently debuted its 100mg THC-infused Uncle Arnie’s Iced Tea Lemonade.
Since the May announcement Fly Beverage has increased its dispensary placement from approximately 25 accounts to more than 40 accounts throughout California. Due to the company's ability to increase market share and a now projected $20 million target valuation, management believes an increased equity investment is appropriate for Cann American's growth strategy.
"In considering that Fly Beverage has managed to nearly double their placements in a month despite logistical hurdles created by the COVID restrictions, I'm increasingly bullish on their long term prospects and the value that investment can bring to Cann American and its shareholders,” Can American CEO Jason Black said. “I truly believe they will be the dominant beverage company serving California dispensaries in a matter of months."