SunPure Signs LOI for Cannabis-Infused Beverage Distribution
Cannabis Company SunPure Industries Signs LOI Agreement With Le Canna Royale for a Line of Cannabis-Infused Beverages
VERNON, British Columbia, October 18, 2018 (Newswire.com) - SunPure Industries Ltd. (“SunPure” or the “Company”), an advanced-stage Canadian cannabis company, and Le Canna Royale USA ("Le Canna") are pleased to announce that they have signed a Letter of Intent (LOI) for a Licensing and Royalty Agreement in order to form a joint venture to pursue opportunities to develop non-alcoholic, cannabis-infused beverages for the Canadian market following legalization.
The joint venture will be structured on a semi-exclusive basis for a period of five (5) years to produce a line of cannabis-infused non-alcoholic beverages for Canadian distribution, following regulatory approval. The new business development venture will benefit from the proven beverage experience of Le Canna's CEO Robert Morrissey who is a recognized early innovator in the fast-growing consumable cannabis sector market, which is expected to become legal in Canada in Q3 2019.
SunPure’s President and CEO Mike Mueller stated, “Canada has broken new ground in the legal recreational cannabis sector and SunPure has a unique opportunity to participate in the beverage segment of this exciting and upcoming cannabis-infused market. This new venture is consistent with our growth strategy and our commitment to bringing stakeholder value to our shareholders. We look forward to creating this new revenue stream with a partner who will enable SUnpure to offer its consumers new experiences with quality, reliable and consistent non-alcoholic, cannabis-infused beverages. We look forward to partnering with Le Canna, as its management team brings with them a wealth of knowledge and experience in the Colorado cannabis beverage market.”
"Le Canna Royale USA is pleased to work towards a definitive agreement and, with a respect for law and regulations, establish a relationship built on trust, where together we will develop responsible, high-quality cannabis-infused beverages for the consumable cannabis market in Canada. Our goal has always been to create cannabis drinks that offer a new and uniquely crafted experience to the cannabis beverage consumer. We shall market these drinks in view of the cannabis connoisseur mindset and not in the fashion taken on by generic drinks or alcohol. Our message will be clear - be yourself and don’t judge others. Our goal is to create drinks and marketing campaigns driven by the unstoppable rise of a market that’s truly unique," said Robert Morrissey, president and CEO of Le Canna Royale USA.
Closing of the transaction, which is targeted to occur in Q1 2019, is subject to the satisfaction of certain conditions, including execution and delivery of various transaction agreements, including governance documents, R & D, packing, licensing, distribution and supply agreements.
About SunPure Cannabis Co.
SunPure is a cannabis cultivation company in the advanced licensing stage under Canada's Cannabis Act and is located in British Columbia’s Okanagan Valley on a founder-funded 40-acre agricultural land package. The land boasts unlimited free-flowing water from an underground Artesian Water Aquifer system, natural gas service and a dedicated 3-phase electrical service which will be upgraded to 1,000 AMPS of 3-phase power. Upon the closing of its initial round of financing, SunPure is set to begin construction on its phase one 13,608-square-foot greenhouse and is targeting a 35-acre outdoor seeding of industrial hemp for CBD extraction Q2 2019 through a contract Hemp Grower Agreement which will provide for complete operational production and harvesting. SunPure is founder-funded to date, which includes land acquisition and all site construction costs.
The SunPure brand will have a strong, differentiated focus on cannabis concentrates instead of flower. It will offer cannabis-infused beverages, health products and other consumer goods. The Company will feature a selection of craft cannabis strains suited for the emerging marijuana markets domestically and abroad. Our comprehensive quality control program will ensure safe and reliable products that are responsibly grown and delivered with unparalleled customer service.
About Le Canna Royale
In 2009, Robert Morrissey was the sole founder, brand-creator and formulator behind popular American beverage Keef Cola and successfully launched the brand into the cannabis beverage market of Colorado. Now Morrissey is doing it again with his Le Canna Royale brand, designed to be the legacy brand of cannabis drinks. Many of its features go against the flow of traditional cannabis-infused sodas, non-alcoholic beers and wines. Le Canna's beverage flavours are designed as stand-alone ready-to-drink beverages or to be enjoyed in combination with top spirits in a social shared experienced.
Le Canna Royale Market
As seen in the Colorado and California legal cannabis markets, cannabis-infused beverages are set to surpass cannabis flower as the preferred mode of cannabis consumption. However, the cannabis drink market is becoming saturated with colas. It is BRN’s belief that the drink market needs diversity. Le Canna Royale fits a niche market - one that appreciates esthetically-designed bottles, messaging that goes beyond mediocrity and drinks designed to be enjoyed as a socially shared experience. Our ability to avoid being locked into mainstream corporate price wars will allow BRN to capitalize on its uniqueness as a brand. The socially shared experience market segment is underdeveloped when it comes to cannabis beverages and BRN estimates that Le Canna Royale will set the standard in this space.
For further information about SunPure Industries, please visit the Company’s website at www.sunpure.ca and to view a video of the Armstrong facility;
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This news release contains forward-looking statements, which relate to predictions of future events or future performance and reflect management's current expectations and assumptions based on information currently available to the Company. "Forward-looking information" within the meaning of applicable securities law ("forward-looking statements") are frequently characterized by words such as "plan," "continue," "expect," "project," "intend," "believe," "anticipate," "estimate," "may," "will," "potential," "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. Readers are cautioned that the forward-looking statements throughout this news release are neither promises nor guarantees, and are subject to a variety of risks and uncertainties that may cause future results to differ materially from those expected or projected in the forward-looking statements herein. These forward-looking statements are made as of the date hereof and the Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Source: SunPure Industries Ltd.