Expanding from cannabis-based skin products into the beverage side of the wellness industry, Yield Growth Corp. (CSE:BOSS; OTC:BOSQF) just acquired eight formulas for THC- and CBD-infused drinks from natural health vendors Vivek Taneja and Bhavna Solecki.
The deal will see Yield Growth paying $100,000 in shares and warrants to the vendors to acquire the new formulas.
Vivek Taneja — who has previously worked for such corporations as Coca-Cola, Nestle Water, and Minute Maid — has also been brought on as the company’s new head chemical engineer.
In his new role, Taneja will lead the company’s commercial-scale cannabis extraction and hemp root oil production processes.
After the formula asset acquisition is complete, Yield’s subsidiary company UJ Beverages will develop a line of new products to sell in Canada and U.S. states where cannabis has been legalized.
The new infused beverage products will be marketed as preventing or lessening the effects of hangovers, providing energy, battling anxiety, and treating the symptoms of inflammation.
Yield Growth Chief Executive Officer Penny Green commented on the deal:
Both infused beverages and hemp or marijuana-derived CBD products represent two large new growth sections of the overall cannabis industry.
Just last week, Auxly Cannabis Group (TSX.V: XLY) acquired Uruguay-based hemp growing company Inverell S.A. for the purposes of producing CBD products.
In infused beverage news, Tilray recently struck a $100 million deal with beer giant Anheuser-Busch to develop CBD and THC beverages, which is a partnership likely to dominate the Canadian market in the months to come.
Aside from the pending development of CBD-infused beverages, Yield Growth primarily operates through subsidiary Urban Juve to provide skin-based cannabis products such as lip balm. Earlier this month, the company announced a second manufacturing run of 5,000 lip balm units to meet increased demand.
That product line is now being adapted with hemp-based formulas following the passage of the Farm Bill to meet legal restrictions for sale in the United States.