After staying quiet for several months, BevCanna Enterprises Inc. (BEV.CN) (BVNNF) has been busy and has reported three separate announcements this week.
One of the most important developments to be reported by BevCanna was the completion of trial production runs of its exclusively licensed line of Keef Beverages as well as the white-label beverages it is producing for State B Beverages.
BevCanna produced and evaluated multiple formulations (i.e. sparkling water, tea-based and soda formats) and multiple bottling formats. The company conducted tests on shelf stability and we are favorable on the thoroughness of the pre-production process. BevCanna plans to start product commercialization by the first quarter of 2021, assuming that it is granted the necessary processing licenses.
Another key development is related to strengthening BevCanna’s balance sheet. The Canadian cannabis beverage company recently received a $750,000 capital injection from a private placement as well as $500,000 from the exercising of 1.5 million stock options by the senior management team.
The other announcement from BevCanna was related to the addition of retail beverage marketer Donald Wood to the company’s independent advisory board. The company expects him to bring a wealth of sales and marketing experience in the beverage sector to the business and we will monitor the impact that he has on the operation.
Currently, BevCanna is trading at $0.27 and we are favorable on the management teams’ decision to exercise the stock options. We are of the opinion that this shows that the management team has confidence in the operation and considers it to be undervalued.
The funds are being used to prepare BevCanna’s industry-leading high-capacity beverage manufacturing facility for the granting of a standard processing license from Health Canada. Prior to the financing announcement, BevCanna was trending higher and was building momentum. We believe that BevCanna is an opportunity to be aware of following the recent developments and will keep an eye on how the story evolves from here.
If you are interested in learning more about BevCanna Enterprises, please send an email to email@example.com with the subject ‘BevCanna Enterprises’ to be added to our distribution list.
Published at Fri, 30 Oct 2020 12:45:57 +0000