OTTAWA, Feb. 15, 2019 /CNW/ - CannaRoyalty Corp. d/b/a Origin House (CSE: OH) (OTCQX: ORHOF) ("Origin House" or the "Company"), a leading North American cannabis products and brands company, today announced that the Company has signed a memorandum of understanding ("MOU") to take over the exclusive distribution of Kurvana products across Northern California, thus terminating Kurvana's distribution arrangements with other third-party distributors in that region. As part of the MOU, the parties have also agreed to explore the transition of distribution in Southern California, subject to fulfilment of mutually acceptable conditions.
Kurvana is the leading premium vape pen brand in California, currently ranked as the fifth1 brand in revenue overall in California. Origin House's subsidiary, RVR, has distributed Kurvana-branded products since December 2015 and has historically held non-exclusive distribution rights in Northern California.
"Through its unique approach of creative engineering, scientific discovery, and manufacturing excellence, Kurvana has established itself as the leading premium California cannabis brand with impressive revenue growth, year over year," said Afzal Hasan, President and General Counsel at Origin House. "As an existing distributor of Kurvana-branded products in Northern California, we have first-hand insight into the brand's popularity and potential for future success. Through this arrangement, we are excited to reinforce our relationship with Kurvana and support its mission of delivering best-in-class cannabis products to California's discerning consumers. We are confident that our partnership will form a solid foundation for Kurvana's growth trajectory, while offering significant benefits to Origin House shareholders."
"Our number one priority for 2019 is to solidify Kurvana's dominance in the California market, the largest cannabis market worldwide," said Drew Cesario, Regional Sales Manager at Kurvana. "A strategic partnership with Origin House and their extensive distribution platform will be a key component to accelerated growth in the Northern California region. We are thrilled to deepen our relationship with Origin House and optimistic for the year ahead."
Under the Company's brand acceleration program, Origin House has agreed to provide strategic financing of up to US$10 million (the "Financing") to Kurvana under a promissory note. Up to US$4 million of the Financing will be available to Kurvana to draw on immediately and the remaining US$6 million will be available subject to fulfillment of certain conditions.
According to BDS Analytics, 2018
Kurvana is the #1 premium vape pen brand in California. The company currently offers 3 distinct lines of cannabis oils that deliver multiple options for connoisseurs and beginners, including the flagship Kurvana ASCND line of high-potency vape pens. Since its launch in 2014, Kurvana has transformed the industry by offering products of uncompromising quality, sitting at the intersection of science and nature. Today, Kurvana has gained a loyal following and expanded its product range, while abiding by the original values of quality, integrity, and innovation. The company is single-minded in its commitment to enhance the everyday life of consumers with the most natural, pure, and safe cannabis products in the world. Kurvana products are exclusively available at California state licensed retailers.
For more information visit www.kurvana.com.
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 amount and timing of the investment by the Company, the impact of the Company's partnership with Kurvana on the growth of the "Kurvana" brand and the California cannabis industry generally, the Company's expansion of its footprint in California, the Company's timing and process for expansion in Canada and globally, timing for the Company's acquisition of 180 Smoke, the execution of the Company's strategy, 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.
SOURCE Origin House
For further information: Marc Lustig, Chairman and CEO, [email protected], 1-844-556-5070, www.originhouse.com; Jonathan Ross, CFA, LodeRock Advisors Inc., [email protected], 416-283-0178; Allison Luvera, Head of Marketing, Kurvana, [email protected], 1 -888-588-5873