ADVERTISE WITH US - Download Rate Card.
Ottawa, Canada – January 30, 2019 – CannaRoyalty Corp. d/b/a Origin House (CSE: OH) (OTCQX: ORHOF), today announced that it has agreed to provide additional strategic financing of US$750,000 to Utopia Cannabis, 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, 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.
- Origin House will provide Utopia with USD$750,000 towards the prepayment of Utopia-branded manufactured products including cannabis flower, concentrates, edibles and PAX pods.
- Utopia will provide RVR high terpene/high cannabinoid full spectrum extracts, healthy edibles, California’s only Live Resin PAX pods, in addition to premium jarred flower.
- Repayment will be made in the form of state compliant cannabis products at a discount to the wholesale price.
- RVR’s exclusive distribution rights of Utopia manufactured products will be extended to January 24, 2020.