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BevCanna Plans To Close Naturo Deal In Several Weeks, Posts Revenue Update

January 20, 2021 10:34 am
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BevCanna Plans To Close Naturo Deal In Several Weeks, Posts Revenue Update

BevCanna Enterprises Inc. (CSE:BEV) (OTCQB:BVNNF), a producer of cannabinoid-infused beverages, plans to close a deal to buy Naturo Group by mid-February.

Back in December, BevCanna and beverage developer and producer, Naturo Group, announced the agreement and called the pending combination “unbeatable.”

The new entity is expected to have a balance sheet with some CA$55 million ($43.3 million) in assets, a more diversified portfolio of both cannabis and other plant-based beverages, as well as a multi-channel distribution network.

BevCanna expects the acquisition to provide $18 million in proprietary on-site natural alkaline spring water aquifer, more than 3,000 retail points and 40,000 square-foot beverage facility.

Nautro’s enterprise value is reported to be between CA$37 million and CA$38 million.

“BevCanna and Naturo each bring a number of unique strengths to the combination, that together form an even stronger company,” Naturo chairman and CEO Marcello Leone said. “BevCanna’s leadership in the cannabis-infused beverage sector and direct to consumer e-commerce business , together with Naturo’s innovative TRACE plant-based mineral beverages and supplements, significant manufacturing assets and extensive distribution network, will form the foundation of a unique, market-leading health and wellness company well positioned for long-term growth.”

Pure Therapy Achieves Record Sales

The Vancouver, British Columbia-based company also reported that its direct-to-consumer e-commerce company, Pure Therapy, had record sales.

Pure Therapy was acquired by BevCanna in September. It had a run rate of around CA$7.68 million in revenue and positive EBITDA of CA$37 million to date this year.

Since BevCanna completed the purchase, the direct-to-consumer e-commerce platform attracted 3,270 new customers.

“Our goal with the Pure Therapy acquisition was to quickly build a strong recurring revenue stream,” John Campbell, Chief Strategic Officer for BevCanna, said in a statement. “We’ve stimulated revenue growth by adding new products, investing in customer acquisition and retention programs and leveraging the platform's current mix of subscription-based and traditional sales revenue models. We're very pleased with the progress that we've made towards a very strong 2021.”

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Cannabis News Markets