Bevcanna Enterprises Inc C.BEV

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Why are all the people from C.OILS/SPR coming here to cry?

[shneps]

"Lawsuits are par for the course". Really?
"But it is a rare day when such law suits actually impact shareholder return." Really?
Seems an awful waste of money when these lawsuits are rarely amount to anything.
2019-litigation-trends-annual-survey

Let's just kind of go through the Naturo/Bevcanna association a bit.
-I don't know this but assume there was some connection between Miller Springs and water distribution with an insider's assosciation.
- Naturo has 50 million shares. How much were these shares originally issued to shareholders for an equity position. Let's be generous and say they were $0.04 a piece for an equity raise of $2M. Part of that money was used to purchsase the Miller's 300 acre farm and small water bottling plant. Remember this was only a part time business for them (Millers) in the off season from catlle ranching. They were only allowed to pump 6,250 litres a day from the well so this was a very small Mom and Pop operation. See attached below:
Global News Report
Bevcanna Farm and Well
Click on Permits Here

-Naturo comes along and picks everything up for (let's be generous) $1.5M. Well is 60' deep, 6" diameter with a flow rate of 55 litres per minute (remember this because it is important later). Cost of well and license maybe $15,000 paid by the Miller's. Bottling facility was part of property sale. In the two items attached you will see that there is approx. 80+ wells on Sidley Mountain, all tapping into the exact same pristine akaline spring water as Naturo. The vast majority of volume being for irrigation and domestic water. See attached below:
Sidley Mountain Well Map

- Naturo (very wisely sees the coming of cannabis infused beverages) they perform a reverse transaction of an existing public traded company and form Bevcanna.
- Naturo rebrands Miller Springs to Trace and puts lipstick on a pig and makes a silk purse from a sow's ear. Takes some professional photos and boom. It's a beauty.
- Naturo leases the land, well and small bottling facilty to Bevcanna. They have been collecting about $2.5M a year, for the last two years, in lease payments. No income of BEV. Sad face.
- Naturo (thru Bevcanna) expands and upgrades the bottling facilities to the new 210 million bottle a year facility (remember this to as it is important later) 40,000 sq ft facility. Might be completed by year's end but we don't know yet. All paid for by Bevcanna shareholders. Thank you.
- Still waiting on the license for Bevcanna but still paying the leases to Naturo.
- Hey, let's build our own 300 acre outdoor cannabis grow operation. Bevcanna tells shareholders they are going to produce 769kg/acre x 300 acres for 230,000kgs/year of cannabis. One of the highest production yields in the industry and 60,000kgs more then the entire Canadian industry in 2019. Aphria produces 230,000kgs in 2020. See below:
https://Canadian-marijuana-growers-expected-to-top-100000-kilograms-of-annual-production

-Bevcanna hires Clearwater Cannagrow and installs all the 8' high barbed wire fencing around the property, builds out all the required storage/equipment/processing/etc. Again, all at Bevcanna's shareholders expense but also all to the financial benefit of Naturo's shareholders. 
-Bevcanna sees the outdoor growing of cannabis as a disaster and drops the growops. This is when everybody sues each other. Note the fact nobody's is suing Naturo but only Bevcanna. Naturo's off the hook (liability wise) and possibly receives everything Bevcanna's shareholders built should the lawsuits be lost. Probably the reason why the transaction can still go through with the lawsuits pending.Again at shareholders expense but the assets are still on Naturo's property.
- Now that all the expensive assets are in place (on Naturo's property) they have it independently evaluated for $40M. (I have even done this myself on occasion. Buy a property, have the bank hold of on evaluation until improvements are made, evaluate, place a mortage according to the new valuation.) This includes the well for $18 million. How can it have a valuation of $18M when it would have cost less then $10,000 to originally install. Wells cost between $50-$100 for foot maximum + they now have to install a meter.The water is free. They don't even pay $2 per million litres. As I have shown above there are over 80 wells on the mountain. This may have a license but it didn't cost $18M. BS. They evaluate the bottling facility at three times the cost to build it.
- Naturo (not an arm's length entity) now says - We'll be nice and sell you our $40M worth assets for only $20M. Give us 50 million shares @ $0.40 per share and its yours. Oh along with the legal issues. Sorry, we'll through those in for free. Remember that their shares have now increased ten fold and they been collecting millions from Bevcanna in lease agreements and sharing the same offices, executives, etc for building out the business we are selling to you for half price. Thanks guys. Smiley face.
- As for the $5M dollar capital injection. How can you (BEV) buy our business if you are technically already bankrupt. Well you can't. And besides that I want to be able to sell my 50 million shares that I originally acquired for pennies and sell them for between $1.00 and $1.50 (that's the reason for the 50% above market offering).
One final thing about the water and the bottling facility:
You will note in the permits for the well that:
- the well flow rate is 5 litres/minute for a total of 21,600 litres per day
- the maximum amount of water they are permitted to extract is only 8500 litres per day or 7.8 million litres per year.
- with Trace's 500ml water bottles that's only 6.2 million bottles per year or 300ml bottles that is 10.3 million bottles per year. Why did they build a 210 million bottle per year facility when you can only extract enough water to fill even 5% of the plant's capacity.
The engineers review of the well is also 6 years old.

As Naturo is a private entity I don't have access to their financials and have made some assumptions but base these assumptions are on general market valuations and available public information. The point of this excercise was to show how Bevcanna's forward statements and news release/verbage hype and spin what is actually happening.
Shareholders get totally screwed and Naturo's shareholders are millionaires.
Just my opinion.
Take it or leave it.