BevCanna partners with Clearwater to expand production
February 14, 2020 By Grow Opportunity staff
Infused beverages company BevCanna Enterprises Inc. is entering an exclusive agreement with Clearwater CannGrow Ltd. in an effort to expand production.
Under the updated terms of agreement released on Feb. 14, Clearwater has agreed to provide its outdoor cultivation services exclusively to BevCanna. Clearwater principal, Joey Bedard-Brunet, will become BevCanna director as the company agrees to pay for all future capital and operational expenses under the agreement. This agreement will also give BevCanna a 50 per cent net revenue participation on 292-acres of cannabis production with no cash outlays.
“The exclusive agreement with Clearwater CannGrow will assist BevCanna to more than double its potential cannabis biomass output,” said John Campbell, Chief Strategy Officer of BevCanna. “At the same time, we will recoup our original capital expenditures and eliminate all future cash outlays for farm related capital expenditures and operating costs.”
In exchange, BevCanna is issuing one million shares at $0.50 per share. A one-time reimbursement will be offered to Clearwater for expenses of up to $3.4 million. The company also looks to pay Clearwater an operational cost of $10,000 per acre of outdoor cultivation site.
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