Cannabis products and brand company Origin House, the registered business name for Canada-based CannaRoyalty Corp. , announced Tuesday a deal to buy certain business assets of California-based cannabis cultivator Cub City LLC for $7.03 million. As part of the deal, Origin House will acquire a craft cultivation facility with production capacity of 1,400 kilograms of flower a year, implying a purchase price of $5 per gram of funded capacity. The facility is currently undergoing construction, which is expected to be completed in March 2019. "Access to bespoke third-party cultivation is critical for new flower brands that want an authentic brand promise from seed to consumption," said Origin House President Afzal Hasan. Origin House's U.S.-listed shares have rallied 18% over the past three months, while the ETFMG Alternative Harvest ETF has dropped 17% and the S&P 500 has lost 3.7%.