Organic Flower to acquire 80% of all the issued and outstanding shares in the capital of CanaBeer. Credit: mnm.all on Unsplash.

Organic Flower Investments Group has entered a definitive agreement to acquire 80% of 11353675 Canada Corporation, which is doing business as CanaBeer.

Under the agreement, Organic Flower will acquire 80% of all the issued and outstanding shares in the capital of CanaBeer in exchange for its 9,166,000 common shares.

Organic Flower director and CEO Joel Dumaresq said: “Organic Flower continues to differentiate itself from its peer group through the astute acquisition of a broad basket of downstream assets with exposure margin rich cannabis verticals.

“This exclusive partnership augments Organic Flower’s existing cannabinoid beverage production portfolio, including coffees, teas, and juices.”

Through a partnership agreement with a Toronto-based brewery, the Brewhouse, CanaBeer will hold the exclusive formulation, manufacturing and distribution rights for all cannabinoid-infused beverages developed at the Brewhouse.

Organic Flower and CanaBeer plan to commence product formulation and batch testing during the second quarter of this year, with commercial production slated to begin in the fourth quarter.

“This exclusive partnership augments Organic Flower’s existing cannabinoid beverage production portfolio, including coffees, teas, and juices.”

Equipped with custom production equipment, research, development and testing facility, and a brewing infrastructure, the Brewhouse has an annual production capacity of 120,000 hectolitres (hl).

With the acquisition of Canabeer, Organic Flower will have exposure to a collective of domestic and global brewery partners, and will be able to further enhance its offering with non-alcoholic beers, seltzers and ready-to-drink (RTD) beverages.

Additionally, Brewhouse has the ability to package steel kegs as well as plastic one-way kegs and has an adjoined tasting and viewing facility.

Currently, Brewhouse’s facility is nearing the completion of retrofit initiatives, which are projected to increase its output capacity to more than 200,000hl per annum.

Last month, Organic Flower signed a binding letter of intent to acquire 80% of Potluck Potions and Edibles, which manages beverage industry supply chains, including the bottling and manufacturing of various beverages.