Keef Brands Takes Equity Position In BevCanna: What Cannabis Investors Need To Know

BevCanna Enterprises Inc. BEV BVNNF, a manufacturer of cannabis-infused beverages, said Tuesday that Keef Brands acquired an equity position in the company.

Keef Brands is the “highest-grossing cannabis beverage company in the U.S.,” according to BevCanna, taking the first place in both units and dollars sold.

It sells its products in more than 1,000 dispensaries across Arizona, California, Colorado, Michigan, Nevada, Oklahoma and Puerto Rico, and provides eight out of the top 10 best-selling cannabis beverages in The Centennial State and two of the 10 top-selling beverages in The Golden State.

The deal calls for BevCanna to provide production and distribution services for Keef Brands in Canada, launching the brand in the following two quarters.

Furthermore, it will use Keef's U.S. production and distribution connections to reach the cannabis market in the U.S., with plans to advance distribution of their ready-to-launch brands like Anarchist Mountain.

Under the deal, BevCanna will provide 182,500 of its shares at a price of 70 cents each in exchange for BevCanna’s principal amount of Keef Brand’s convertible debenture, which was previously issued to BevCanna on April 30 and is convertible to shares of Keef.

“We’re extremely pleased with the confidence that Keef has shown in both BevCanna’s future prospects and in our mutual relationship” John Campbell, chief strategy officer for BevCanna, said in a statement.

“We see a great future for the two companies working together, with both companies benefiting from the other’s market expertise and distribution networks, and we’re happy that Keef sees the same potential.”

Photo courtesy of BevCanna.