The creation of TransCanna’s new business segment coincides with the company’s execution of a non-binding letter of intent to acquire the branding asset package, Biovelle, from an arm’s length third party.
Biovelle is an organic hemp infused CBD coconut oil which is non-GMO, vegan and gluten free. It is currently available both online and on dispensary shelves from California to New Jersey.
“With the passing of the Farm Bill and the explosive growth of the hemp sector we decided to expedite our formation of our hemp related division. Acquiring Biovelle is the perfect fit. It represents a clean, natural healthy way to experience hemp derived CBD combined with the benefits of coconut oil, and it’s also an excellent catalyst to create a complete line of Biovelle products,” stated Jim Pakulis, CEO of TransCanna.
Hemp has over 25,000 uses, both direct and derivative, crossing into more markets and industrial verticals than any other crop on the planet.
Currently, the global CBD hemp oil market is valued at over USD$950 million, but it is projected to climb at a compound annual growth rate of 11% to surpass $2.5 billion by 2026.
TransCanna’s move into hemp CBD oil will immediately expand the company’s sales footprint, enabling it to sell a growing hemp-based oil line to boutique outlets, such as gyms and nutritional stores, as well as large supermarkets the world over.
“We’ve decided to take the next step with our product by finding a partner who had access to capital and the true ability to scale our operations. We firmly believe in the value of Biovelle and want to support our customers and this acquisition with TransCanna does just that. We will become proud shareholders of TransCanna and look forward to helping build the company for the future,” stated Briana Cristofaro, CEO of Biovelle.
The Biovelle asset acquisition is still subject to due diligence and execution of final binding definitive purchase agreement and there is no assurance the purchase will carry forward on the terms set forth above or at all.
In other news, TransCanna announced that with the closing of the 196,000 square foot property, it has commenced preparing the licensing paperwork to apply for and obtain five separate county and state cannabis related licenses.
The sellers of the facility, who currently act as consultants for TransCanna, contracted the services of Crimson West Consulting, a firm which specializes in assisting cannabis companies secure local and state licensing.
Both TransCanna and the former owners are working with Crimson to present the necessary licensing paperwork to the county by the first week of June.
Shares in TransCanna slipped CDN$0.20 in morning trading to rest at $7.20 per share.
Currently there are 16,995,654 issued and outstanding shares with a market cap of $125.8 million.
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