Cannabis-focused Weekend Unlimited Inc (CSE:YOLO) announced Tuesday that it has closed its November acquisition of Verve Beverage Company, the maker of both CBD and non-CBD beverages.
Verve has a unique position in the beverage market and the deal provides a platform for the Vancouver-based company to expand its distribution as well as its product offerings.
“This distribution network will allow us to grow and manage indirect channel and big box placements nationwide for multiple brands in our portfolio,” said Paul Chu, Weekend CEO, in a statement.
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 nano water that has been infused with over 78 electrolytes, minerals and glyconutrients.
It is also infused with MCT oil for additional health benefits, with no added sugar.
READ: Weekend Unlimited will be steered by new CEO Paul Chu to grow acquired brands in Canada, Jamaica and the US
“VBC’s CHAMP CBD and non-CBD beverages serve to extend our opportunities in the wellness industry, positioning the company’s line to take advantage of growing demand as the market shifts in attitude, and legislatively, regarding quality cannabinoid products,” said Bradley Robb, president of brands for Verve.
“As the official energy drink of the NHL’s San Jose Sharks, CHAMP sales and distribution will be initially focused in the California market,” added Robb.
Verve is set to launch a CBD-infused beverage in the first quarter of 2019 in what could represent a lucrative new product for Weekend. CBD-infused beverages are expected to become a $600 million market in the US by 2022, according to Canaccord Genuity.
Under the terms of the deal, Weekend will issue 60 million common shares to Verve shareholders. One-half of those shares will be held pursuant to voluntary escrow agreements, that see 20% released immediately and the balance in equal instalments every six months over the next three years.
Weekend Unlimited shares held steady to finish at C$0.145 on Monday.
Contact Ellen Kelleher at [email protected]