Mr. John Campbell reports
BEVCANNA ANNOUNCES CLOSING OF DEBT SETTLEMENT
Bevcanna Enterprises Inc., further to its news release dated March 22,
2024, has settled debt in the aggregate amount of $1,930,742.55 owed
by the company to certain creditors of the company in exchange for 1,755,209 common shares at a deemed price of $1.10 per debt settlement share.
All of the debt settlement shares issued pursuant to the debt settlement are subject to a statutory
hold period of four months plus one day.
The debt settlements with John Campbell and Howard Blank (together, the insider settlements)
are related party transactions within the meaning of Multilateral Instrument 61-101, Protection of
Minority Security Holders in Special Transactions. The insider settlements are
exempt from the valuation requirement of MI 61-101 by virtue of the exemptions contained in
Section 5.5(b) of MI 61-101 as the company's common shares are not listed on a specified market
and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption
contained in Section 5.7(1)(a) of MI 61-101 in that the fair market value of the insider settlements
will not exceed 25 per cent of the company's market capitalization. As the material change report
disclosing the insider settlements is being filed less than 21 days before the transaction, there is a
requirement under MI 61-101 to explain why the shorter period was reasonable or necessary in the
circumstances. In the view of the company, it is necessary to immediately close the insider
settlements and therefore such shorter period is reasonable and necessary in the circumstances
to improve the company's financial position.
About Bevcanna Enterprises Inc.
Bevcanna is a diversified lifestyle and wellness
consumer packaged goods company. Bevcanna develops and manufactures a range of alkaline,
mineralized and cannabinoid beverages and supplements for both in-house brands and white-label clients.
Based in British Columbia, Canada, Bevcanna owns a pristine alkaline spring water aquifer and a
high-capacity 40,000-square-foot, Health Canada- and HACCP-certified flexible manufacturing
facility in Osoyoos, B.C. The company's extensive distribution network includes
traditional and regulated retail distribution, and on-line through its market-leading brands.
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