OTTAWA , Jan. 30, 2019 /CNW/ - CannaRoyalty Corp. d/b/a Origin House (OH.CN) (ORHOF) ("Origin House" or the "Company"), a leading North American cannabis products and brands company, today announced that the Company has agreed to provide additional strategic financing of US$750,000 to Utopia Cannabis ("Utopia"), an award-winning California -based cannabis brand. The funds have been advanced towards the purchase of Utopia-branded manufactured products including cannabis flower, concentrate, edibles and PAX pods.
Origin House's distribution subsidiary, RVR Distribution, has been the distributor for Utopia-branded jarred extracts, and edibles since February 2016 . In conjunction with this financing, RVR Distribution will take over the exclusive distribution of Utopia's premium cannabis flower, which was previously undertaken by a third-party distributor. The Company now has exclusivity on the complete suite of Utopia-branded products on its distribution platform.
This financing is subsequent to the successful previously announced financing and brand acceleration agreement, wherein Origin House advanced US$750,000 to Utopia to accelerate its manufacturing and production schedule at the company's then newly permitted Type 7-Manufactuirng facility in Monterey County . Within a few months, all repayment was made back to Origin House ahead of schedule, while Utopia saw a substantial increase in sales and overall growth, demonstrating the strength of Origin House's brand acceleration model.
"As we continue to execute on our corporate strategy, we look forward to strengthening our exclusive relationship with Utopia and on-board new partners to our proven platform to accelerate growth for promising cannabis brands," said Afzal Hasan , President and General Counsel at Origin House. "Utopia embodies what we value in a brand partner - consistently delivering an authentic best-in class cannabis experience. Since the last financing to Utopia, they were able to increase the annual sales run rate to US$8.7 million 1, with substantial growth potential in 2019."
"We are privileged to have the support of the strong teams at RVR and Origin House. Over the past three years, we have built a strong partnership leveraging their extensive distribution resources and our authentic, industry-renowned products. This forward payment will continue our strong momentum in the California market," stated Kaiya Bercow , CEO & Co-Founder of Utopia Cannabis.
Transaction Summary
About Utopia
Utopiaâ„¢ is a leading cannabis brand focused on curating clean, premium products for California consumers. Since 2014, Utopia has been a leading cultivator and manufacturer with the debut of their signature C. Banana strain. Committed to pure, best-in-class cannabis, Utopia has won over three dozen awards for quality, innovation and consistency. Consumers can find Utopia products at retailers throughout California and connect with the brand at www.utopiacannabis.com , [email protected] or via social media @utopia.ca.
About Origin House
Origin House is a growing cannabis products and brands company operating across key markets in the U.S. and Canada , with a strategic focus on becoming a preeminent global house of cannabis brands. The Company's foundation is in California , the world's largest regulated cannabis market, where it delivers over 130 branded cannabis products to the majority of licensed dispensaries. Origin House's brand development platform is operated out of five licensed facilities located across California , and provides distribution, manufacturing, cultivation and marketing services for its brand partners. The Company is actively developing infrastructure to support the proliferation of its brands internationally, initially through its acquisition of Canadian retailer 180 Smoke. Origin House's shares trade on the Canadian Securities Exchange (CSE) under the symbol "OH" and on the OTCQX under the symbol "ORHOF". Origin House is the registered business name of CannaRoyalty Corp. For more information, visit www.originhouse.com.
Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Origin House's periodic filings with Canadian securities regulators. When used in this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should," and similar expressions, are forward- looking statements.
Forward-looking statements may include, without limitation, statements relating to the timing and completion of the transactions and agreements contemplated in this press release, the execution of the Company's strategy, new opportunities, the Company's timing and process for expansion in Canada and globally, timing for the Company's acquisition of 180 Smoke, new opportunities, future growth and other statements.
Although the Company has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects that are engaged in activities currently considered illegal under US federal law; changes in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. The Company disclaims any intention or obligation to update or revise such information, except as required by applicable law, and the Company does not assume any liability for disclosure relating to any other company mentioned herein.
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Based on annualized December sales as reported to Origin House by Utopia (unaudited) |
SOURCE Origin House
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