Cannabis-infused beverage maker BevCanna has signed a non-binding letter of intent (LoI) with Maritime-based licensed cannabis producer Argentia Gold.

Under the LoI, Argentia will exclusively represent BevCanna’s cannabis-infused beverage products in Newfoundland, Prince Edward Island and New Brunswick provinces of Canada.

BevCanna chief strategic officer John Campbell said: “Argentia is the ideal partner for us in the burgeoning Atlantic market.

“They have an unparalleled knowledge of the regional cannabis landscape and a detailed understanding of the distribution network. They also have excellent relationships with the provincial bodies in these provinces, which will assist us as we focus on building our presence in the region.”

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The two companies entered into a non-binding LoI with the intent of signing a definitive agreement within the next 45 days.

Under the agreement, BevCanna will offer finished cannabis or cannabis extract products to Argentia, while Argentia will be providing supply chain, distribution and sales infrastructure and services in the specified provinces.

For the services provided by Argentia, Bevcanna will pay a service fee of 15%, with up to an additional 5% bonus will be paid based on the achievement of mutually agreed sales milestones.

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Argentia Gold Business Development head Dave Thomson said: “We’re excited to bring BevCanna’s innovative and diverse cannabis-infused beverage portfolio to the Atlantic region.

“We are laser-focused on bringing the same high-quality, in-demand products that are being sold in the larger Canadian markets to the Atlantic provinces, and we expect BevCanna’s upcoming line of beverages to be extremely popular with consumers.”

In March, BevCanna signed a non-binding letter of intent (LoI) with Californian cannabis beverage brand Calexo.

Established in 2019, Calexo, based in Los Angeles, launched its first sparkling cannabis drink this year.