Canada’s BevCanna and cannabis beverage brand Calexo enter LoI

Cannabis-infused beverage maker BevCanna has 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.

The company’s beverages use all-natural fruit juices, botanicals and nano-emulsified THC and are free from artificial flavours, sweeteners or colours.

Under the LoI, the company agreed to become the exclusive Canadian manufacturing partner for the newly launched Calexo line of beverages.

Calexo’s beverage line-up includes two flavours, Citrus Rose and Cucumber Citrón.

BevCanna chief strategic officer John Campbell said: “The partnership with Calexo is an exciting opportunity for BevCanna.

“Calexo combines unique branding, all-natural ingredients and flavour-forward formulations to create elegant, social beverages.

“These drinks represent the type of high-quality products that BevCanna is committed to bringing to the Canadian market. We look forward to a prosperous partnership that results in continued growth for both partners.”

Under this new profit share joint venture (JV) agreement, BevCanna will use its experience in developing and launching beverages in the country in line with Health Canada regulations and standards.

Initially, the agreement will be in place for five years and comes with a renewal option.

Additionally, Calexo agreed to provide access to BevCanna to its existing US distribution networks for future product launches.

Going forward, BevCanna is also planning to launch its ready-to-drink and powdered beverage mix products in the Californian market.

Completion of the deal is subject to the satisfactory completion of due diligence investigations.