VANCOUVER, British Columbia, Aug. 01, 2023 (GLOBE NEWSWIRE) -- Nevis Brands (CSE:NEVI) (OTC:PSCBF), a leading provider of cannabis beverage products, has completed the acquisition of THC Essentials. Nevis acquired THC Essentials (www.thcessentials.com), a business unit that owns several leading cannabis brands, including Major™, from SoRSE Technologies for a purchase price of US$1,125,000 and 3,775,000 shares at a deemed price of $0.10.
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In 2022, THC Essentials generated $1.55 million in licensing revenue, while incurring a cost of goods sold of $420,458, which resulted in a gross margin of $1,133,806 and a net profit of $235,420.
John Kueber, CEO, stated: “We are looking forward to increasing efficiencies in packaging, supply chain, and marketing operations with our licensees. 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.”
With the acquisition, Nevis Brands obtained the assignment of all licenses and royalty agreements and associated royalty revenue from the sales of beverages infused with SoRSE’s Emulsion Technology in Washington, Oregon, Arizona, Colorado, and Ohio, where it currently sells cannabis products including Major™, Happy Apple™, Atomic Apple™, Vertus™, and Velvet Swing. The company has made several enhancements to make Major™ more widely available in states where it is already active which has already generated an agreement in principle with a new US state licensee to introduce Major™ in an upcoming market by September 30, 2023 and will provide more information once the licensing agreement is finalized and initial production and distribution are underway.
In addition, Nevis completed a licensing agreement with Oregon-based Angel Industries, to provide increased distribution of Major™ in Oregon, as well as increasing its product line to include Atomic Apple™ after positive reception to test marketing in early 2023. Angel Industries, known for manufacturing and distributing successful products such as Blossom Gummies and Angel Drops, currently serves more than 120 retail locations across the state.