Nevis Brands (CSE:NEVI) Inc, the cannabis beverage producer, has completed the acquisition of THC Essentials, the company announced.
THC Essentials owns several cannabis brands, including Nevis’ flagship drink Major. Last year, the company generated $1.55 million in licensing revenue and a net profit of $235,420.
Going forward, the plan is to increase efficiency and reduce cost of goods sold. On the product side, Nevis has already made Major more available in the states it is currently sold, the company said.
“We are looking forward to increasing efficiencies in packaging, supply chain, and marketing operations with our licensees,” CEO John Kueber said in a statement. “Through various successful measures, we have already made significant strides in advancing our Major brand franchise. We are excited about several immediate opportunities that will deliver cost savings and generate greater revenue.”
Besides Major, Nevis sells brands including Happy Apple, Atomic Apple, Vertus and Velvet Swing in Washington, Oregon, Arizona, Colorado and Ohio.
However, another state is soon to join that list, Nevis announced.
The company has reached an agreement in principle with a new US state licensee to bring Major to a new state by the end of September.
Additionally, the company has completed a licensing agreement with Oregon-based Angel Industries to provide increased distribution of Major in the state. Nevis plans to increase its product line to include Atomic Apple after the brand received a positive reception in test marketing earlier this year.
“We look forward to expanding the retail presence of the Major brand throughout the state of Oregon and are excited about the opportunity to add new products and flavors such as Atomic Apple to the marketplace,” Angel Industries CEO Mike Kirkwood said.
Angel Industries currently serves more than 120 retail locations in Oregon.
Elsewhere, Nevis is exploring the sale of the intellectual property portfolio of Pascal Biosciences. The portfolio represents $4 million worth of research and development regarding cannabinoid therapies for Covid-19, including one pending patent.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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