BevCanna Enterprises Inc. has announced it intends to purchase all issued and outstanding securities of Naturo from its owners, with the company becoming a wholly-owned subsidiary of BevCanna.
“The joining together of these two companies will be an unbeatable combination,” said Marcello Leone, founder of Naturo and CEO of BevCanna. “BevCanna is evolving into a comprehensive health and wellness company, and this combination accelerates that evolution. 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. The merger creates significant value to both organizations and brings together two exceptionally experienced teams, forming one of the most innovative beverage and natural health products companies in our industry.”
The combination will create the only fully licensed, in-house and white-label beverage manufacturing company that distributes both conventional and cannabis-based beverage and wellness products. The newly formed company will now have access to global, multi-channel distribution networks of traditional and cannabis sales channels.
BevCanna will take ownership of Naturo’s 40,000-sq.-ft., high-capacity beverage facility, 315 acres of outdoor cultivable land valued at $10.4 million, beverage manufacturing equipment valued at $3.4 million (as of year end), and a proprietary Health Canada approved fulvic and humic plant-based mineral formulation.
BevCanna will also take possession of one of Naturo’s exclusive, onsite alkaline spring water source, independently valued at $18 million. As water resources become increasingly more scarce, BevCanna expects that the proprietary resource will contribute to a strengthened balance sheet and to BevCanna’s unique positioning within the exploding plant-based and cannabis sectors.
BevCanna will also own the Naturo flagship brand, TRACE, which currently enjoys a leadership position within the Canadian plant-based fulvic and humic mineral category and is sold in more than 3,000 Canadian retailers. Along with nationally-distributed alkaline and sparkling waters, TRACE is incorporating additional nutraceuticals and herbal remedies, including cannabinoids, adaptogens and nootropics, into its products to be sold in domestic and international markets.
As per Naturo’s latest independent estimate pricing report (February 2020), Naturo’s enterprise value is between C$38 million and C$42 million.
The transaction agreement provides for the issue of 50 million common shares of Bevcanna to acquire all outstanding shares of Naturo. The agreement contains a number of customary conditions to closing, including the approval of the CSE, and specifically provides that closing is subject to satisfactory due diligence investigations by Bevcanna, shareholder approval by Naturo, and that arrangements are made in respect of Naturo’s assets and liabilities that will be assumed by Bevcanna on closing of the transaction.
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