Cannabis-infused beverage maker BevCanna has signed a letter of intent (LoI) to acquire beverage manufacturer Naturo Group Investments (Naturo).

Under the LoI, BevCanna will purchase all the issued and outstanding securities of Naturo, in exchange of nearly 50,000,000 of its common shares at a deemed price of C$0.40 per share.

Once the deal is finalised, the former security holders of Naturo should own approximately 32% of the issued and outstanding common shares of BevCanna.

The total assets owned by the Naturo is estimated to be around C$35m ($26.8m).

The companies will suspend the LoI once they execute a definitive agreement.

Naturo founder and BevCanna CEO Marcello Leone said: “We believe that the joining together of these two companies will be an unbeatable combination.

“Creating innovative beverages that consumers will love, whether mineral or cannabis-based, wellness-focused or recreational, continues to be our passion.

“Now we’re at a stage where a business combination will position us to provide incredible value for both organisations and bring two exceptionally experienced teams together, creating one of the largest CPG, cannabis beverage and natural products players in the industry.”

Upon completion of the proposed deal, Naturo will be part of BevCanna as its wholly-owned subsidiary.

BevCanna will take ownership of the 40,000ft2 beverage facility, as well as 315-acres of cultivatable land and beverage manufacturing equipment.

It will also take over an exclusive onsite alkaline spring water source.

Additionally, BevCanna will also assume the ownership of Naturo flagship brand called TRACE.

The total assets owned by the Naturo is estimated to be around C$35m ($26.8m).

The proposed deal will also see the creation of a fully licensed white-label beverage manufacturing and distribution company.

BevCanna chief strategic officer John Campbell said: “BevCanna has taken great strides in the past few years and in addition to its commercialized US products, is now on the brink of commercialisation across the Canadian market.

“Our exclusive partnership with Naturo has been instrumental in our success and it’s now time to formalise the relationship and bring together the strengths of both companies.”

Earlier this month, BevCanna launched ready to mix beverage enhancers in Canada.