It’s been a busy few months for BevCanna Enterprises, and company President Melise Panetta and CEO Marcello Leone join The Dales Report to discuss the latest developments and how they all suggest a bright future for the brand.
The summer proved to be somewhat slow for those investing in cannabis stocks, but BevCanna took the opportunity to further develop its infrastructure in preparation for future industry expansion. One of these strategic moves was just announced hours ago, and naturally became the hot topic of conversation.
BevCanna revealed this morning that they have entered a definitive agreement to acquire Embark Health Inc. in the company’s official press release, BevCanna expressed its pleasure with the acquisition of the extraction producer and how it would further strengthen the beverage brand’s influence in the industry.
“Acquisition of solventless cannabis extraction and enhanced delivery technology bolsters the company’s beverage portfolio with valuable IP, adding four innovative brands in the adult-use cannabis market and $17M in assets to the balance sheet.”
When it comes to high-end solventless cannabis extracts, few can match the level of intellectual properties and manufacturing resources found at Embark Health. Embark’s technology sees the brand produce a wide variety of cannabis and hash products ranging from edibles, concentrates, liquids, topical creams, and powder drink mixtures.
The acquisition also brings BevCanna one step closer to the health and wellness industry, as Embark served as the majority owner of ProtienQuest, a brand using Embark’s proprietary technology to develop “protein-enhanced and functional food industries with initial commercial products utilizing hemp seeds.”
Marcello Leone expanded on the benefits of this purchase and how it brings BevCanna one step closer to its ultimate objective.
“We’re sticking to our vision of becoming a leader in health and wellness innovation, and Embark significantly accelerates BevCanna’s evolution into a diversified health and wellness company.”
Leone goes on to praise Embark’s extensive portfolio, which he describes as “unique and diverse,” which includes a broad range of adult-use wellness and innovative product categories.
“Their acquisition for BevCanna and Embark will unlock significant value for both organizations. It brings together two exceptionally experienced teams, and a very comprehensive and innovative health and wellness company for our industry. This has been our purpose, to make sure that we really work hard to be innovative and getting ready for 3.0, and having that ability to be a diversified health and wellness company.”
The acquisition also gives BevCanna access to both of Embark’s state-of-the-art production facilities, each combining for more than $17 million in tangible and intangible assets.
Embark Delta is a federally licensed 40,000 sq. ft facility that produces everything from concentrates to topicals and powdered beverage mixtures. The operation offers BevCanna a turnkey, licensed solution to production, packaging, and distribution. The plant is strategically located in lower British Colombia.
Calgary’s smaller EmbarkNano is focused on the development of nano precursors and the production of technology for future nano products. The facility is not licensed under the country’s Cannabis Regulations, but this is currently not necessary given the scope of procedures conducted at this particular location.
As the conversation continues, Panetta and Leone offer great insight into the future of BevCanna and how this strategic partnership can further advance its product offering.
When asked about where the company hopes to see itself in 18 months, Marcello’s response was full of optimism.
“To be that leader in the health and wellness, diversified health and wellness and innovation of cannabis 2.0, and the evolution to 3.0. And to continue to dominate in the plant-based sector and to continue to make sure that our margins are strong.”
Panetta also took the time to further discuss purchase orders, distribution agreements, and white label deals that are currently in play for BevCanna.
“Our portfolio of clients is growing. It’s grown since the last time we spoke and it’s going to continue to do that. You know, we’ve got the Keith partner from the US, the number one beverage in the US. We are partnering up with green monkey, the number one beverage in the UK, and we’ve made other announcements about clients that we have recently acquired. The pipeline is Definitely, the funnel is still full. shad know that that message has not changed.”
“One thing I would say is we’re being very selective about who we’re working with, we want to work with winners, we want to work with world-class recognized names. And yes, and you know, you’ll hear more about that as the time comes. And also wanted to share that we are in full-scale production over in our facility for, for our products, our own purchase orders for three of the largest provinces in the cannabis sector today, and building out that roster as we speak as well. So, like Marcello said, The impact is now.”