BevCanna Completes $21M Acquisition Of Embark Health,…

BevCanna Completes $21M Acquisition Of Embark Health, Now Has More Than $100M In Assets

BevCanna Enterprises Inc. (CSE:BEV) (OTCQB:BVNNF) (FSE:7BC) announced Friday that it has closed its previously announced acquisition of solventless cannabis extraction and delivery technology provider Embark Health Inc.

“Completing the acquisition of Embark Health is a significant milestone in BevCanna’s strategic transformation into a diversified health and wellness company,” John Campbell, CFO and chief strategic officer of BevCanna stated. “The acquisition also bolsters BevCanna’s balance sheet. Embark brings $17 million in tangible and intangible assets, including direct ownership of $11 million in equipment and the use of a modern production facility in Delta, BC. This acquisition brings BevCanna to over $100 million in unaudited assets on the balance sheet and $2.9 million in long-term liabilities.”

The Deal Summary

Under the agreement, BevCanna acquired all of the issued and outstanding Embark Securities by way of a “three-cornered” amalgamation whereby Subco, a wholly-owned subsidiary of BevCanna, and Embark amalgamated pursuant to the provisions of the Business Corporations Act (British Columbia) to form one corporation.

Pursuant to the amalgamation, BevCanna issued to holders of common shares of Embark an aggregate of 54.93 million common shares of BevCanna as consideration for the purchase price of $21 million, plus an estimated closing working capital adjustment of $3.72 million.

Deal Highlights:

The combined entity will have over $100M in assets on the balance sheet and $2.9 million in long-term liabilities.
Adds a unique range of valuable brands across all three cannabis 2.0 categories.
Adds a state-of-the-art production facility in Delta, BC, with $17 million in tangible and intangible assets including direct ownership of $11 million in equipment.
Adds innovative solventless extraction technology that enables BevCanna to offer hash, bubble hash, live rosin and other adult-use cannabis products.
Adds experienced management and operations team members who are pioneers in cannabis, extraction, and drug delivery technology, including Bruce Dawson-Scully, founder and CEO of Entourage Health (OTCQX:ETRGF) Marcus “Bubbleman” Richardson, best known as the founding pioneer of bubble hash and Michael West, global extraction expert who developed, designed and built more than a dozen world-class extraction facilities for companies such as Cresco Labs (OTCQB:CRLBF).