News Alert: Breakthru Strikes Exclusive Cannabis Deal In CanadaSeptember 10, 2018
Breakthru Beverage has announced that it has signed a letter of intent to become the exclusive distribution partner for cannabis producer CannTrust in Canada.
Under the proposed deal, Breakthru will make a strategic investment in CannTrust, establishing a cannabis-focused sales brokerage company and developing a route-to-market platform for recreational sales. That brokerage will remain separate from Breakthru’s existing Canadian organization.
Breakthru will be purchasing 902,405 common shares of CannTrust at a purchase price of $10.23 per share for gross proceeds of $9,231,600. Breakthru will also have the option to purchase up to an additional 2,000,000 common shares looking forward. The transaction remains subject to typical closing conditions, including the signing of a definitive agreement and completion of due diligence.
Recreational sales of cannabis will begin in Canada on October 17, and other drinks players including Constellation, Southern Glazer’s and Molson Coors are also gearing up to enter the category. Diageo has also been rumored to be considering a play.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.