Cannabis-focused Weekend Unlimited Inc (CSE:YOLO) outlined to investors its big beverage plans as it gave more detail on its plan to buy Verve Beverage Co, for which it has signed a letter of intent.
Verve has a unique positioning in the beverage market and is a very popular brand, with direct sales of $230 million over seven years previously.
"We have the opportunity to reposition the Verve brand and build it out in North American with an existing base of support. Verve Beverage Company has a high-profile position as an official partner of the NHL's San Jose Sharks," noted Cody Corrubia, the president and chief executive at Weekend Unlimited.
Verve also holds the Champ Energy brand, which gives Weekend an accelerated model to launch into CBD-infused beverages, an area that is attracting much interest currently.
Champ, which is the official energy drink of the NHL's San Jose Sharks, allows people to feel the beneficial effects of CBD while getting all the health benefits of a nano water that has been infused with over 78 electrolytes, minerals and glyconutrients, said the firm.
It's also infused with MCT oil infused for additional health benefits, with no added sugar.
The acquisition is still subject to due diligence.
If it goes forward, Weekend has agreed to issue 50 million shares in exchange for 100% of the company holding these two brands, Champ and Verve.
The brands are held subject to a 20-year license agreement that provides a 3% royalty on sales.
Notably, Weekend has entered into a secured US$2 million loan facility pending closing, of which US$750,000 has been advanced.
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