Investment in BevCanna, Cannabis Infused Beverage Company
Investment in BevCanna, Cannabis Infused Beverage Company
Perth, June 14, 2018 AEST (ABN Newswire) - MMJ PhytoTech Limited (ASX:MMJ) ("MMJ") has invested CAD$0.5 million for a 3.6% shareholding in privately-held BevCanna Enterprises Inc. ("BevCanna").

Business model

Based in Vancouver, Canada, BevCanna intends to become a fully vertically-integrated premium-based cannabis infused beverage manufacturer.

Specifically, BevCanna aims to operate as a white label, end-to-end producer of CBD and THC beverages(see Note below).

Business plan

BevCanna is in customer contract discussions with Access to Cannabis for Medical Purposes Regulations (ACMPR) Licensed Producers.

BevCanna's current business plan is based solely on being a wholesaler to the Canadian medical cannabis market, however the recreational market represents potential future upside(see Note below).

Manufacturing arrangements

With future funding rounds, BevCanna will build out its manufacturing facility, subject to a licensing arrangement, on the site of a premium alkaline spring water source and bottling facility at Bridesville, BC owned by The Naturo Group Investments ("Naturo Group"). Naturo Group owns Trace (tracebeverages.com) and Naturo Aqua (naturoaqua.com) beverage product lines which are currently sold in over 3,000 retail locations across North America.

CEO comment

MMJ's CEO Jason Conroy commented that "We are excited by the opportunity to invest in BevCanna, founded by influential and experienced cannabis market executives, and see significant potential upside in their business model and manufacturing arrangements."

Note: Health Canada's regulatory approach to cannabis edibles (which includes beverages) is expected to be finalised within 12 months after the Federal Government's Cannabis Act (Bill C-45) becomes law.


About MMJ PhytoTech Ltd

Phytotech Medical ASX:PYL

In October 2017, MMJ PhytoTech Limited (ASX:MMJ) announced its strategy to become an incubator for strategic investments across regulated jurisdictions globally covering the entire cannabis value chain.

Following the successful listing of United Greeneries Holdings Ltd ("United Greeneries") and Satipharm AG ("Satipharm") on the TSX-V through Harvest One Cannabis Inc. (CVE:HVT), MMJ has focused on the identification of a number of independent strategic investment opportunities that have the potential to deliver significant value to the Company's shareholders.

MMJ is actively pursuing early stage opportunities with the ability to deliver significant future revenue and the opportunity to provide dramatic global synergistic value as regulatory frameworks in key international markets continue to evolve. MMJ is targeting the full range of emerging cannabis-related sectors including healthcare products, technology, infrastructure, logistics, processing, cultivation, equipment, R&D, hemp food products and retail.

MMJ currently holds an equity stake of 53,333,333 shares in Harvest One, 100% ownership of Israeli-based R&D division PhytoTech Therapeutics Limited ("PTL") and strategic holdings in e-Sense Lab Limited (ASX:ESE) and private Canadian-based company WeedMe Inc.

      


Contact

Investor and Media Enquiries:
Jason Conroy
Chief Executive Officer
T: +61-2-8098-0819
E: jconroy@mmjphytotech.com.au



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