Mota Ventures Corp. announced it has entered into a letter of intent (the "LOI"), dated February 5, 2020, with BevCanna Enterprises Inc. Under the terms of the LOI, the parties will negotiate a joint venture, which is expected to provide the Company with the exclusive right to sell and market BevCanna house brand lines of hemp derived CBD products in Europe. The parties will share ownership in the joint venture equally, along with any costs of the venture. BevCanna will contribute in-house brands, formulations, proprietary intellectual property for water-soluble powders, marketing and manufacturing expertise. The Company will arrange manufacturing, marketing and distribution infrastructure across Europe, with a specific focus on, Spain, Portugal, Austria, Germany, France and the United Kingdom. The parties will work together to jointly determine the appropriate product launch, mix and timing for each individual European market. The joint venture is expected to be in place for an initial term of five years with a subsequent five year renewal option.
Formation of a joint venture remains subject to ongoing due diligence by each of the Company, and BevCanna, including a review of the intellectual property to be contributed to the joint venture, as well as the negotiation of definitive documentation. BevCanna and Mota will work together to launch a diverse infused beverage product portfolio ranging from proprietary water-soluble powder, to ready to drink formats. The CBD dosage, flavors, and branding will be jointly determined by the parties for each individual European market based on existing offerings and market dynamics. BevCanna's formulation and product positioning is focused on the health and wellness market in North America.