BevCanna Enterprises Inc., an emerging leader in infused cannabis beverages, has increased the size of its outdoor cannabis cultivation site to 292 acres, up from the originally announced 130-acre site. BevCanna has partnered with agricultural experts Clearwater CannGrow Ltd. to grow certified organic sun-grown cannabis on the property near Osoyoos, British Columbia.
This expansion of cultivatable land will allow BevCanna to develop into one of the largest outdoor cannabis cultivators in Canada. The Company has, in turn, increased its anticipated production to 300,000 kg – 400,000 kg of biomass, and a yield of 30,000 kg – 40,000 kg of pure cannabinoids through the finished extract.
“Interest in our BC sun-grown cannabis has been exceptionally strong, and we’re expanding our cultivation and production capabilities to meet the anticipated demand,” said John Campbell, Chief Strategy Officer at BevCanna. “The increased capacity will position BevCanna well to become a leader in the production of high-quality, next-generation products, in the lead-up to Canada’s commercialization of such products in 2020.”
In conjunction with the additional cultivation capacity, BevCanna has completed a debt settlement with cultivation partner Clearwater CannGrow, for $500,000, in exchange for the issuance of 1,000,000 common shares (each, a “Share”) at a deemed price of $0.50 per Share.
“We’re very pleased to further strengthen our relationship with Clearwater CannGrow,” said John Campbell, Chief Strategy Officer at BevCanna. “Clearwater CannGrow’s direct expenditures into our agricultural operation are an incredible sign of confidence and commitment to the operation, and to BevCanna as a whole.”
The Shares issued in the debt settlement are subject to resale restrictions imposed by applicable law or regulation, including a statutory hold period expiring four months and one day from the date of closing of the debt settlement.