Cannabis investors just gained another option to buy shares in with BevCanna Enterprises Inc. (CSE:BEV) having debuted on the Canadian Securities Exchange (CSE) last Tuesday. The Vancouver-based company specializes in cannabis-infused beverages and claims to have decades of experience building and developing brands.
BevCanna could be a good partner for companies looking to sell pot-infused drinks as it plans to produce white-label products that can be easily rebranded.
The vertically integrated company has a capacity to produce 72 million bottles per year at its manufacturing facility, in addition to 100 acres of cultivation space both located in the Okanagan Valley in British Columbia.
The CSE is an interesting choice for the company given it is based in Canada and in its press release no reason was provided as to why it chose that exchange over the Toronto Stock Exchange or its Venture Exchange. Typially, U.S.-based companies start trading on the CSE due to the TSX not allowing pot companies that violate U.S. federal laws surrounding the drug.
Regardless, the company’s CEO Marcello Leone sees the move as a big one for BevCanna:
We already have the industry expertise, world-class infrastructure and unmatched natural resources to build a market leader, and this listing will provide the foundation to fully realize our potential
With many small companies looking to fight for market share, BevCanna certainly has a bevy of potential clients that might otherwise not have the skills and capabilities to produce quality edible products themselves.
Company gets hemp license
On Wednesday, the company also said it received a hemp cultivation license from Health Canada. BevCanna is aiming to produce low-cost and high-quality hemp biomass to extract CBD and infuse the compound into a premium bottled water product. The company will produce and distribute the bottled water through its partnership with Naturo Springs.
Leone believes BevCanna will be able to offer consumers the variety that might be lacking in the industry:
It’s an interesting statement to make given the CBD edibles and beverages market has yet to launch in Canada. He may be referring to the U.S. market, but it remains unclear.
Canadian regulators said a “limited selection” of products will available when they are cleared for sale by mid-December, but whether the rollout will be stifled with supply shortages is still unknown.
Some of the big players in the market, including Hexo (TSX:HEXO) and Canopy Growth Corp. (NYSE:CGC)(TSX:WEED) have already indicated they will have products ready to go.
BevCanna and its clients will be facing stiff competition in the cannabis edibles and derivatives market, but the demand for the beverage segment may be lighter and therefore less crowded. The demand for beverages will likely dictate BevCanna’s fortunes, and if it’s weak, it may be an uphill battle for BevCanna to win over investors.
Not only is the company trading on the smaller CSE, but proving its products are superior to those from larger cannabis companies partnered with beverage giants will be no easy task.