BevCanna Enterprises Inc., a Vancouver-based provider of infused cannabis beverages, announced on March 26 that it has entered into a non-binding letter of intent to partner with California cannabis beverage brand Calexo.
Under the proposed agreement, BevCanna will become the exclusive Canadian manufacturing partner for the Calexo line of beverages.
The joint venture will be structured as a profit share JV agreement, and the maintenance of exclusivity is subject to mutually agreed-upon forecast milestones being met.
The agreement will be for an initial term of five years with a subsequent five-year renewal option.
According to the agreement, Calexo will also provide BevCanna with access to its current and future U.S. distribution networks for future product launches.
“The partnership with Calexo is an exciting opportunity for BevCanna,” said John Campbell, chief strategic officer at BevCanna, in a prepared statement. “These drinks represent the type of high-quality products that BevCanna is committed to bringing to the Canadian market. We look forward to a prosperous partnership that results in continued growth for both partners.”