The companies signed a share exchange agreement under which BevCanna has purchased all the issued and outstanding securities of Carmanah and the business of the company. In return, BevCanna issued 8,941,176 common shares in the capital of the Company to the shareholders of Carmanah at a deemed price of $0.425 per share.
The acquisition gives BevCanna access to an extensive library of cannabis genetics, including 50 premium cannabis strains and over 25 types of cannabis seeds, including six auto flower seed varieties. There is an excess of 50 strains by clone and 250,000 cannabis seeds ranging from high THC to high CBD.
Additionally, a large portion of the genetics are outdoor-specific strains that originated in California, which boasts a very similar climatic zone to the company’s operations in the Okanagan and are expected to increase yields.
“Together with the recently announced increase in our outdoor cannabis cultivable land to almost 300 acres, the acquisition of Carmanah’s proven outdoor genetics will allow BevCanna to develop into one of the largest outdoor cannabis cultivators in Canada,” BevCanna Chief Strategy Officer John Campbell stated.