Jan 15, 2020 Caileam Raleigh

BEV Stock Soars After Carmanah Craft Acquisition

BEV stock

BEV stock is gaining today after BevCanna Enterprises (CSE:BEV) (OTCPK:BVNNF) announced that it had acquired cannabis genetics firm Carmanah Craft Corp.

Cannabis Genetics Deal

The Canadian cannabis beverage maker announced that it had issued 8,941,176 common shares of the company at a price of $0.425 to the shareholders of Carmanah in the arm’s length transaction. The deal will give BevCanna access to an extensive range of cannabis genetics, including 50 premium cannabis strains and over 25 types of cannabis seeds, including six auto flower seed varieties. BEV stock is currently up just over 8% at the time of writing.

“This deal will dramatically increase our overall cannabis yield projections,” said Joey Bedard-Brunet, Head of Cultivation at BevCanna Enterprises.

“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,” said John Campbell, Chief Strategy Officer at BevCanna. BEV stock is currently trading for $0.31.

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A significant portion of the genetics library supplied by Carmanah is outdoor specific strains that originate from California, which has a very similar climatic growth environment to BevCanna’s operation in the Okanagan Valley in British Columbia and, therefore, is expected to significantly increase crop yield. Additionally, the genetics library includes some of the top mold-resistant, outdoor, high yielding, auto flower seeds, each expected to yield more than two kilograms per plant.

Flat Start for BEV Stock

News of the takeover has provided some signs of action in BEV stock after a relatively flat start to the year. Having traded for around $0.43 on December 26, the stock fell over 30% by New Year’s Eve and has failed to get back to those levels since. While the cannabis beverage market is expected to be worth US$2.8 billion by 2025, current regulations and the slow rollout of legalization 2.0 have hindered any substantial growth so far.

BevCanna Enterprises currently markets a THC-infused sparkling water line under the Anarchist Mountain label, while its forthcoming Lev range of fruit-flavored CBD-infused water is expected to arrive on market early this year. BEV stock currently holds a ‘Buy’ rating from Trading View.

>> Read More Cannabis News

Featured Image: DepositPhotos © Fotofabrika

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