BevCanna Enterprises Inc (CSE:BEV) (OTCMKTS:BVNNF) announced Wednesday that it had struck a deal to acquire Exceler Holdings Ltd, giving the infused beverage company a stronger foothold in Europe and Asia.
The Vancouver-based company will acquire all of the issued and outstanding shares of Exceler, an arm’s length private British Columbia corporation, in exchange for two million BevCanna shares.
The agreement gives BevCanna access to Exceler’s multiple distribution points across Europe and Asia ahead of the launch of its CBD beverage products in the European Union.
BevCanna said it plans to leverage its existing joint venture with European distributor Mota Ventures Corp (CSE:MOTA) (OTCPINK:PEMTF) to execute the agreement.
The agreement with Mota sees BevCanna contribute its in-house brands and formulations, as well as its proprietary intellectual property for water-soluble powders. Mota, on its part, will arrange manufacturing, marketing and distribution in Europe, with a particular emphasis on Spain, Portugal, Austria, Germany, France and the UK.
The companies will work together to launch a CBD-infused beverage portfolio, including both powder and ready-to-drink formats. Mota and BevCanna will share ownership of the venture equally and take on any costs together.
"On closing, the ability to sell through Exceler's extensive distribution network is intended to quickly accelerate our expansion into the EU market," said John Campbell, chief strategy officer at BevCanna. "We anticipate that the BevCanna lines of CBD beverages will soon be available to consumers across the continent."
The deal is subject to standard closing conditions as well as Exceler having positive working capital and no long-term debt.
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