RE:RE:RE:RE:BEVCANNA SEDI FILINGS~YOUR PRESIDENT JUST GAVE YOU A COOKIE! LuckyAF. See replies below.
What's the URL for this e-commerce business they acquired?
Pure Therapy Oils - Pure Therapy Oils
Where's Emma?
Emma recently had a baby and has been on maternity leave from what I have seen... I doubt she’s working much.
(See insta below)
https://instagram.com/emmarunsvan?igshid=ey797x2vsm4w
Wouldn’t be surprised if BevCanna hired someone new...
in the companies press release on Friday.(BevCanna Reports Significant Progress; Anticipates Imminent Receipt of Standard Processing License), they mention that “With this foundation in place, we're also now solidifying our leadership team, so that we're prepared to immediately execute.”
They recently brought founder of Clearly Canadian, Doug Mason, who led that Clearly Canadian to $155M in sales and to a NASDAQ listing onto their advisory board, and from this release it looks like they have some new hires in the pipeline.
Where's the guy who was supposed to grow the pot?
I wouldn’t be surprised if BevCanna has terminated the agreement with Clearwater CannGrow and Joey Bedard Brunet. If you google the grower, he seems to have gone to RMMI and since been terminated from them as well.
Based on most recent press release — Company has determined that the current market for cannabis flower and biomass is oversupplied at present and that initiating a large-scale cultivation operation would deviate from BevCanna's current core focusses in Canada. The company will continue to evaluate both the external market for cannabis and its own cannabis biomass requirements and may at a later date decide to initiate outdoor cultivation.
I think it’s for the best that they’re not growing this year, and focussing on their Canadian and US operations.
Why is the COO now also the CFO?
For as long as I have followed the company, John Campbell has been the CFO, and also serves as CSO (Chief Strategy Officer). John holds a CPA and has past investment industry experience from owning a merchant bank called Triview Capital, so the CFO position is justified. And I suppose since he is so well versed in the investment industry, the CSO title is applicable also.
Where's the license?
According to press release last night — license is just around the corner. It was submitted to health Canada on June 22nd, 2020. based on past LP’s timelines from submitting the site evidence package to receipt of SPL, It could literally be any day now.
Where's the revenue?
Their recently acquired company “Pure Therapy” which did $4.8M in revenue last year and the company expects to scale that business in the next 12 months .. good revenue if you ask me.
Canadian operations are just about to start up here, and based on this last release it seems that the facility is commissioned and the white label clients and house branded products are well along the path to commercialization in the coming quarter. I expect substantial revenue from their Canadian operation in the coming 1-2 Quarters.
Why keep diluting shareholders with acquisitions that aren't core to the business?
I would respectfully disagree with this mentality. As a shareholder I was ecstatic to see this acquisition. Went from pre-revenue to adding 12 month trailing revenue of $4.8M and they intend to build off that in the coming 12 months. Big difference in the right direction...
Pure Therapy is a proven e-commerce brand and platform. BevCanna intends to further expand and launch its own CBD proprietary products (Beverages) directly into the global health and wellness market, including the burgeoning U.S. CBD market through this comprehensive e-commerce platform.
Pure Therapy brings an extensive list of over 22,000 customers, and has achieved unaudited calendar year 2019 gross revenues of C$4.8M,. BevCanna anticipates strong growth over the next 12 months, achieved through new product integration, acceleration of the growth of the existing natural health products line, and leveraging the extensive e-commerce marketing expertise of the current Pure Therapy team.
The Pure Therapy acquisition also provides BevCanna with a comprehensive operational engine to scale its new ecommerce platform and brands. This will allow the Company to achieve profitability targets through data analysis, strategic customer acquisition and supply chain management. Since its inception in 2015 this engine has generated a database of over one million customers and has facilitated over C$375M in consumer transactions. The service agreement entails no initial costs for BevCanna. More information will be disclosed in the coming weeks on the agreement.
The Pure Therapy acquisition places BevCanna in an excellent position to expand its overall ecommerce capabilities and build a leadership position with the global cannabis beverage and natural products sector.
Is BEV going to lose their exclusive deal with NextLeaf next month?
My opinion on the NextLeaf & BevCanna exclusive cannabinoid supply agreement:
As a white label beverage manufacturer BevCanna must be agnostic as to which emulsion its clients use. So what you would likely see is a menu of emulsions that BevCanna will offer to its clients, and they then choose who they would like to use.
As a branded product manufacturer, BevCanna has recently partnered with leading cannabis infused beverage brand, Keef (#2 in USA by UNITS SOLD)... and you cant expect Keef to re-formulate their product in the Canadian market. So they will likely be using whatever emulsion Keef has been using in the US and has been so successful with.
From a BevCanna owned brand perspective, the Nextleaf deal could be great because no one else could use the emulsion and it creates a point of difference for their beverages. That said... the Nextleaf emulsion still has check off all the boxes such as fast onset, tasteless and odourless, stability, etc. I would assume BevCanna and Nextleaf are testing and evaluating via R&D under BevCanna’s R&d license.
There are many factors that go into the decision for both companies to stay exclusive with one another, such as the quality of the finished product from BevCanna’s point of view, and and the commercial terms of the deal based on the opportunity from both BevCanna and Nextleaf’s point of view.
I’m not too worried about it. Great if they keep it. Not the end of the world if they don’t.
Summary:
BevCanna's strong asset base, unique value proposition and broad industry relationships position it well to become a leader in the regulated Canadian retail cannabis market. The Company's world-class beverage manufacturing facility, innovative and appealing brands and significant white-labelling capabilities are unmatched in the Canadian market.
BevCanna's newly acquired U.S. e-commerce hemp-based CBD and natural health products platform will also fuel the Company's U.S. and global expansion. Leveraging the platform's proven Direct-to-Consumer (DTC) retailing capabilities to market both established successful natural health products and BevCanna's own innovative and appealing brands will be key in the Company's overall growth strategy.