BevCanna Enters Into LOI With Mota Ventures
BevCanna Enterprises Inc (CSE: BEV) and Mota Ventures Corp (CSE: MOTA) have entered into a non-binding letter of intent where Mota will produce, market, and distribute BevCanna CBD and hemp products in Europe.
As per the joint venture agreement, Mota will manufacture, market, and distribute BevCanna products, including beverages and powder drink mixes to several European countries including Austria, Spain, France, Portugal, the UK, and Germany. Together, the companies will each have 50% ownership, and will incorporate cost-splitting accordingly. BevCanna will contribute product formulas, house branding, proprietary IP, as well as RTD manufacturing and maketing. Meanwhile, Mota will provide all European-related distribution, manufacturing, and marketing operations.
The agreement will be valid for a five year term, but the partners will have the option to renew for another five years thereafter. Together, BevCanna and Mota will create a program forecast for the next five years, which they plan to maintain exclusivity if the milestones in the forecast are achieved.
There are several conditions which must be met before the partnership is finalized. These conditions include board of director approval, ensuring that BevCanna’s trademarks are compatible with the European market, adequate research into each other’s business, and the final completion of the definitive agreement.
Following the letter of intent, BevCanna and Mota plan to negotiate a definitive agreement where they will include the conditions mentioned above, but also include terms outlining warranties, covenants, and representations, as per transaction standards.
In addition to the joint venture with Mota, on January 27, 2020, BevCanna has issued a investor relations and marketing agreement for the duration of one month with Aktiencheck.de AG, which is a consulting firm that will provide the company with corporate marketing, branding, and investor relations. BevCanna paid Aktiencheck.de AG €50,000 for these services.
Mota Ventures Corp. is a cannabis company focusing on the cultivation and extraction of CBD. The company is also listed on the CSE under the name MOTA.
BevCanna is a cannabis company focusing on the white-label and in-house development and manufacturing of cannabis-infused beverages.
BevCanna Enterprises Inc is currently trading at $0.38 on the CSE.
Information for this briefing was found via Sedar and BevCanna Enterprises Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
