BevCanna Enterprises Inc (CSE:BEV) (OTCMKTS:BVNNF), revealed on Thursday that it has signed a non-binding letter of intent with Saskatchewan-based retail cooperative Weed Pool Cannabis Cooperative Limited (WPCC).
Under the agreement, WPCC will distribute and sell BevCanna's line of cannabis-infused beverages and high-end extracts across its Saskatchewan cannabis retail distribution network.
The Vancouver-based firm said the two companies intend to sign a definitive agreement within “the next 120 days.”
A collective of independently-owned Saskatchewan cannabis retailers, WPCC is the largest cannabis buying group in the province. It is responsible for more than 50% of licensed cannabis sales in the province. WPCC is licensed by the Saskatchewan Liquor and Gaming Authority (SLGA) as a wholesaler and focuses on sourcing and negotiating as a collective.
"Our goal is to work with leading distributors in their regional markets, and WPCC fits the bill very well," John Campbell, who is the chief strategic officer for BevCanna, said in a statement.
"As a group of independent retailers operating storefronts in the province, WPCC has an excellent understanding of the retail landscape across the province, and a strong sales strategy for the nearly 20 licensed retailers that they represent.”
Campbell also noted that the WPCC has “good working relationships” with the provincial bodies overseeing the cannabis market, which will “benefit” BevCanna as it launches its cannabis-infused beverages and extracts in Saskatchewan.
"We're excited to be able to bring BevCanna's upcoming line of cannabis-infused beverages and extracts to the Saskatchewan market," said Jim Southam, president of Weed Pool Cannabis Cooperative. "Our goal is to offer innovative, high-quality options to our consumers, and we expect BevCanna's range of products to appeal to both current and new cannabis consumers."
For the agreement to be competed, both parties have to undertake adequate due diligence, negotiate the agreement, and get their board of directors to sign off on the deal. Bevcanna said the deal is also contingent on getting necessary approvals from the SLGA.
Vancouver-based BevCanna uses patented technology to make water-soluble cannabinoid infusions using THC and CBD from cannabis and hemp for in-house brands and white-label clients. The company has a 292-acre cultivation site in the Okanagan Valley, a pristine spring water aquifer, and a 40,000-square-foot manufacturing facility in Osoyoos.
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