FILED SEPTEMBER 10, 2018
Breakthru Beverage Group is making its move in the Canadian cannabis category. This morning, the distributor has signed a letter of intent for an exclusive partnership to represent CannTrust Holdings Inc., one of Canada’s leading licensed producers for medical cannabis.
An affiliate of Breakthru Beverage Group will be purchasing 902,405 common shares of CannTrust at a purchase price of $10.23 per share for gross proceeds of $9.2 million. In addition, the affiliate will have options to purchase additional shares down the road if CannTrust exceeds certain sales thresholds, per a release.
In addition to the investment, Breakthru will establish a cannabis-focused sales brokerage company and develop a route-to-market platform for CannTrust in Canada, effective when the adult-use recreational market opens October 17. The sales brokerage operation will work directly with provincial control boards and designated retail outlets supporting the sales efforts for the CannTrust portfolio of products.
The cannabis sales brokerage operation will reside in a newly-formed subsidiary of Breakthru Beverage Group and will be entirely separate from its beverage alcohol brokerage.It will however, leverage its North American business insights, strategies, technology and analytic tools to be a differentiator in the marketplace, per the release.
“We’re excited to work with the most respected producer in Canada and leverage our well-established business model, which will put us at the forefront of shaping a high performing organization and socially responsible industry,” says Danny Wirtz, vice-chairman of Breakthru Beverage Group. “This is a logical extension of our expertise and provides a new growth opportunity into this emerging market.”
The transaction remains subject to typical closing conditions, including the signing of a definitive agreement.
Emily Pennington – email@example.com
Sarah Barrett – firstname.lastname@example.org
——- Sell Day Calendar ———
Today’s Sell Day: 5
Sell days this month: 20
Sell days this month last year: 21
This month ends on a: Fri.
This month last year ended on a: Fri.
YTD sell days Over/Under: 0
No comments have been posted to this article yet