In its largest deal so far, AREV paid C$5.25 million last year to acquire BC Bud Depot, a top name in cannabis breeding and one of the world’s biggest seed banks.
The company has over 28 acres of land in Sorrento, British Columbia where it is building a processing facility to support its cannabis operations.
Its assets include vaporizers and vape pens as well as a line of skin creams and oils.
It is looking to form partnerships with licensed producers for extraction and processing, but isn’t interested in growing cannabis on its own.
The company has its sights on expansion outside of Canada and is set to move into California, Colombia and Germany
What Arev does?
AREV Brands International Ltd (CSE:AREV) is a Vancouver company that is focused on the research and development of natural health and cannabis-infused products as well as cannabis genetics, strains and seeds.
AREV has gone on the acquisition trail to acquire holdings related to the cannabis business. Its goal is to leverage all of its assets to establish itself as one of the leading players in cannabis breeding and genetics, extraction and cannabis formulations and health-related products.
In its biggest advance to date, AREV paid C$5.25 million back in September of 2018 in an all-stock deal to acquire BC Bud Depot, one of the biggest names in cannabis breeding and one of the world’s biggest seed banks with an inventory of more than 850,000 seeds.
In its portfolio now are also assets from the cannabis company Canna Gold, which include vaporizers and vape pens, which Arev CEO Mike Withrow acquired at a discount for C$1.2m in January of 2019.
Also in Arev’s line-up is the Bare Topicals Brand, a line of cannabis-based skin creams and oils, which Arev took over in November of 2018 for C$160,000 in stock from Alternative Extracts, Withrow’s extraction company.
The company boasts over 28 acres of land in Sorrento, British Columbia where it is building a processing facility to support its cannabis operations.
The company also has its sights on expansion outside of Canada, with a partnership deal in the works with a business in Los Angeles that is building dispensaries and distribution.
It already has a German subsidiary Deutsche Medizinal Cannabis UG, via which it intends to launch in Europe once licenses are secured. The acquisition cost €18,000 and was also arranged in 2018.
And with the help of its ownership of BC Bud Depot, one of the biggest cannabis seed banks and a genetics specialist, AREV has started a breeding business in Colombia and will be registering its genetics in the country.
How is it doing?
The pre-revenue company is forging ahead with its plans to move from a research and development phase to secure licenses for its various businesses.
Management is bullish on the future, with Arev’s team now forecasting that its total revenue will hit C$15.5 million in 2019; C$66.7 million in 2020; and C$87.2 million in 2021.
It intends to work with licensed producers to take advantage of its 28 acre Sorrento property as a breeding, cultivation and processing facility.
It also wants to push ahead with its work on creating custom cannabis strains for clients from its BC location. Also on the agenda is more extraction work with Arev looking to cultivate hops as well as therapeutic plants for extraction and the formulation of natural health products and supplements.
Market forecasts project that demand for cannabis will hit C$4.9 billion to C$8.7 billion in Canada.
What the boss says
“Once we get the licenses in place, we can start selling everything that we’ve acquired and you’ll see significant revenue growth,” concludes Withrow.
“I work for the shareholders and I’m there to make money for the shareholders and I believe we can do that by implementing the strategy that we have.”