SBD Capital to acquire Canadian cannabis beverage company Drip Beverages

SBD Capital acquisition of Drip Beverages : SBD Capital, a publicly-traded company, has issued a non-binding letter of intent to acquire Canada-based cannabis beverage and lifestyle brand Drip Beverages, as per the latest drinks acquisition news.

The proposed acquisition of Drip Beverages will help SBD Capital foray into the cannabis beverage industry and further reinforce its business range.

Drip Beverages, which was founded in 2018, formulates low-calorie micro-dosed products using proprietary technology and has spent approximately $150,000 in startup costs till the current fiscal year.

Brian Stecyk – director of SBD Capital, commenting on SBD Capital acquisition of Drip Beverages, said: “Since 2018, Drip Beverages has been committed to creating highly effective, on trend solutions for the cannabis beverage space.

“We look forward to working closely with the Drip team to maintain momentum for the products as they take hold in the US Marketplace.

“We know that CBD has the potential to disrupt the beverage industry, and are confident that our suite of brands will build brand strength and category relevance with new product innovations, breakthrough marketing strategies, and industry education and advocacy.”

The proposed non-arm’s length deal outlined in the non-binding letter of intent offers the principals of Drip Beverages a provision of 10 million shares priced at $0.12 per common share to be issued over a three year period with one million immediately issued and the balance to be released quarterly, three million warrants exercisable within two years priced at $0.15 per common share and one million options exercisable within two years priced at $0.15 per common share, according  SBD Capital.

The principals of Drip Beverages will own 36% of the resulting outstanding common shares of SBD Capital, if all of the warrants and options are converted into SBD common shares along with the 10 million purchase shares of SBD.

The companies are expected to sign a definitive binding agreement in the coming weeks.