Mota Ventures Corp. (CSE:MOTA, FSE:1WZ:GR)(OTC:PEMTF) (the “Company”) is excited to announce it has entered into a letter of intent (the “LOI”), dated February 5, 2020, with BevCanna Enterprises Inc. (“BevCanna”) (CSE:BEV), an arms’-length party. Under the terms of the LOI, the parties will negotiate a joint venture, which is expected to provide the Company with the exclusive right to sell and market BevCanna house brand lines of hemp derived CBD products in Europe.
The parties will share ownership in the joint venture equally, along with any costs of the venture. BevCanna will contribute in-house brands, formulations, proprietary intellectual property for water-soluble powders, marketing and manufacturing expertise. The Company will arrange manufacturing, marketing and distribution infrastructure across Europe, with a specific focus on, Spain, Portugal, Austria, Germany, France and the United Kingdom. The parties will work together to jointly determine the appropriate product launch, mix and timing for each individual European market. The joint venture is expected to be in place for an initial term of five years with a subsequent five year renewal option.
Formation of a joint venture remains subject to ongoing due diligence by each of the Company, and BevCanna, including a review of the intellectual property to be contributed to the joint venture, as well as the negotiation of definitive documentation. The Company will provide further information regarding the joint venture once terms have been finalized.
BevCanna and Mota will work together to launch a diverse infused beverage product portfolio ranging from proprietary water-soluble powder, to ready to drink formats. The CBD dosage, flavors, and branding will be jointly determined by the parties for each individual European market based on existing offerings and market dynamics. BevCanna’s formulation and product positioning is focused on the health and wellness market in North America.
According to Global Wellness Institute (GWI), the worldwide wellness market grew 12.9% from a $3.72 trillion in 2017 to a $4.2 trillion in 2018. Zenith Global estimates the CBD infused drinks market will reach $1.4 billion by 2023 in the US alone, making it one of the fastest-growing segments in the overall industry. CBD infused beverages will open the floodgates to new audiences who want to consume cannabis in different formats. They have many benefits that rival other methods of ingestions: easy to administer, more accessible, functionality and higher precision.
“The rising demand for Health and Wellness beverages that are infused with CBD globally is immense. We are at the inception of the revolution in the global CBD infused beverage arena. The market trends are evolving and it is evident the development in the CBD beverage market is a space that cannot be overlooked. A major indicator of how important the emerging beverage market is, was the acquisition of a significant stake in Canopy by Constellation Brands, one of the largest beverage companies in the world. We feel that by positioning ourselves to be early adopters in the European market we are poised to capture significant market share in an emerging industry.” stated Joel Shacker, CEO of the Company.
About Mota Ventures Corp.
Mota Ventures is seeking to become a vertically integrated global CBD brand. Its plan is to cultivate and extract CBD into high-quality value-added products from its Latin American operations and distribute it both domestically and internationally. Its existing operations in Colombia consist of a 2.5-hectare site that has optimal year-round growing conditions and access to all necessary infrastructure. Mota is looking to establish sales channels and a distribution network internationally through the acquisition of the Sativida and First Class CBD brands. Low cost production, coupled with international, direct to customer sales channels will provide the foundation for the success of Mota Ventures.
About BevCanna Enterprises Inc.
BevCanna Enterprises Inc. (CSE:BEV,Q:BVNNF,FSE:7BC) develops and manufactures cannabinoid-infused beverages and consumer products for in-house brands and white label clients. With decades of experience creating, branding and distributing iconic brands that have resonated with consumers on a global scale, the team demonstrates an expertise unmatched in the emerging cannabis beverage category. Based in British Columbia, Canada, BevCanna has a 292-acre outdoor cultivation site in the fertile Okanagan Valley and the exclusive rights to a pristine spring water aquifer, as well as a world-class 40,000-square-foot, HACCP certified manufacturing facility, with a current bottling capacity of up to 210M bottles per annum.
ON BEHALF OF THE BOARD OF DIRECTORS
MOTA VENTURES CORP.
Chief Executive Officer
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.
Cautionary Note Regarding Forward-Looking Statement
All statements in this press release, other than statements of historical fact, are “forward-looking information” with respect to the Company within the meaning of applicable securities laws, including with respect to formation of a joint venture with BevCanna, its plans to become a vertically integrated global CBD brand, its plans to cultivate and extract cannabis to produce CBD and high-quality value added CBD products in Latin America for distribution domestically and internationally and its plans to acquire revenue-producing CBD brands and operations in Europe and North America. The Company provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited those identified and reported in the Company’s public filings under the Company’s SEDAR profile at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.