Weekend Unlimited Announces Acquisition of Verve Beverage Company

Weekend Unlimited Inc.has closed its previously announced acquisition of Verve Beverage Company (VBC).

“With the addition of Verve we now have a platform for Weekend to expand both its distribution and product offerings, THC (tetrahydrocannabinol) by state where legal and CBD (cannabidiol) across the country. This distribution network will allow us to grow and manage indirect channel and big-box placements nationwide for multiple brands in our portfolio,” said Paul Chu, Weekend president and chief executive officer.

“Verve is a premium energy beverage with over $236-million (U.S.) in historical sales in the direct-to-consumer channel. VBC Brands owns the exclusive distribution licence to launch this proven brand into retail stores in the U.S., Canada and Mexico, leveraging over $150-million spent in marketing and developing the brand,” said Bradley Robb, president of VBC Brands.

“VBC’s Champ CBD and non-CBD beverages serve to extend our opportunities in the wellness industry, positioning the company’s line to take advantage of growing demand as the market shifts in attitude, and legislatively, regarding quality cannabinoid products,” explained Mr. Robb. “As the official energy drink of the National Hockey League’s San Jose Sharks, Champ sales and distribution will be initially focused in the California market,” added Mr. Robb.

Verve and Champ highlights:

• Verve is uniquely positioned in the beverage market with a proven product and a recognized brand.
• Functional beverages are one of the highest-growth categories in the beverage industry.
• Over $100-million was spent developing the Verve brand globally.
• Verve is physician formulated and clinically studied.
• The Verve brand has sold over $236-million (U.S.) in historical direct-to-consumer sales, now positioned for retail distribution rollout — the sales generated gross margins of approximately 50 per cent.
• Verve is launching a CBD-infused beverage in the first quarter 2019.
• CBD-infused beverages are expected to become a $600-million market in the United States by 2022 according to Canaccord Genuity as reported in Bloomberg.
• VBC is introducing new emerging beverage brands such as Champ Energy under its exclusive distribution licence.
• Champ Energy is the official energy drink of the NHL’s San Jose Sharks.
• VBC plans to launch additional CBD-infused products and has plans to grow its retail footprint through its distribution network and retailer relationships throughout the United States in beginning in January, 2019.

The company will issue 60 million common shares to the shareholders of VBC. One-half of those shares will be held pursuant to voluntary escrow agreements, that see 20 per cent released immediately and the balance in equal installments every six months over the next three years.