BevCanna To Buy Naturo Group To Create 'An Unbeatable Combination'

BevCanna Enterprises Inc. BEV BVNNF, a producer of cannabinoid-infused beverages, will buy Naturo Group Investments Inc., a beverage developer and manufacturer.

The two companies executed a definitive agreement from Dec. 11.

Once the transaction is over, Naturo will become a wholly-owned subsidiary of the BevCanna, which will continue to run a joined business of both companies.

This means that BevCanna will now own a portfolio of both ordinary and cannabis-based beverages and wellness products.

Bevcanna agreed to issue 50 million of its shares to purchase all shares of Naturo, and the agreement requires various conditions to close, such as the approval of the CSE, and shareholder approval by Naturo, among others.

Per the deal, BevCanna will fully acquire Naturo’s 40,000 square feet beverage facility, $3.4 million worth beverage manufacturing equipment, a proprietary Health Canada authorized fulvic and humic plant-based mineral formulation, and $10.4 million worth cultivatable land.

BevCanna will also take over Naturo’s $18 million worth onsite alkaline spring water source, and Naturo’s flagship brand Trace, which is sold across more than 3,000 retailers in Canada.

Naturo is known for a plethora of house brands available in Canada, such as London Drugs, Farm Boy, and 7/11. Its latest independently estimated business value was reported between CA$38 million to CA$42 million.

“The joining together of these two companies will be an unbeatable combination,” Marcello Leone, founder of Naturo and CEO of BevCanna said in a statement. “BevCanna is evolving into a comprehensive health and wellness company, and this combination acceralerates that evolution. We’ll now offer one of the most unique and diverse portfolios of beverage and wellness products within both the cannabis and the fulvic and humic mineral plant-based categories. The merger creates significant value to both organizations and brings together two exceptionally experienced teams, forming one of the most innovative beverage and natural health products companies in our industry.”