Geyser Brands (TSXV: GYSR) announced this morning that the firm has entered into a definitive joint venture agreement with that of Factory Brewing Ltd, who is doing business as Craft Collective. The joint venture will see the two firms jointly develop cannabis infused beverages for the Canadian market through a multi phased approach.
Under the joint venture, both Geyser and Craft Collective will form a new corporation, currently referred to as “NewCo”, in which Geyser will have a 75% stake in the firm, with the day-to-day operations to be managed by Craft Collective. Two phases are to be implemented for the joint venture, with the first consisting of the development and branding of non-cannabis beverages for the Canadian market. The second phase will shortly follow, with cannabis-infused variants of the beverage products.
To maximize operational efficiency, NewCo will outsource all non-cannabis manufacturing and distribution to that of Craft Collective, who currently operates a 70,000 hectolitre facility in Vancouver, BC. Similarily, subject to regulatory approval, all cannabis-infused products created under NewCo will be manufactured and distributed by Geyser Brands at its Port Coquitlam, BC facility.
Partnering with Craft Collective and jointly leveraging our unique areas of expertise will allow both parties to enter this emerging market and develop high-quality non cannabis and cannabis-infused beverages for the consumable cannabis market.Andreas Thatcher, Geyser Brands CEO
The newly formed joint venture is said to combine the craft beverage manufacturing, marketing, and distribution expertise of Craft Collective, with the expertise in cannabis of Geyser Brands.
The joint venture agreement is expected to commence by December 31, 2019.
Geyser Brands last traded at $0.35 on the TSX Venture.
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