OTTAWA, March 27, 2019 /CNW/ - CannaRoyalty Corp. d/b/a Origin House (CSE: OH) (OTCQX: ORHOF) ("Origin House" or the "Company"), a North American cannabis products and brands company today announced that the Company's California distribution division, Continuum, has entered into a distribution agreement (the "Agreement") with Humboldt Sun Growers Guild ("HSSG"), to be the exclusive distributor of Papa's Herb™-branded products in California.
- Pursuant to the Agreement, effective March 25, 2019, Origin House's distribution division, Continuum will be the exclusive distributor of all Papa's Herb™ products in California.
- Papa's Herb™ was founded in California in early 2018, and is backed by the Serruya Family, who have a proven track record of building dozens of retail brands within the consumer packaged goods business, over three decades.
- Offering quality branded flower and pre-rolls at a price point focused on the value segment of the market, Papa's Herb™ bolsters Continuum's portfolio and will help Continuum to meet strong and growing demand for value-based flower and pre-rolls.
- California's illegal cannabis market was estimated to be worth US$3.7 billion in 2018 – more than four times the size of the legal market. By catering to consumers looking for affordable cannabis offerings that are tested and compliant, Papa's Herb™ aims to help migrate consumers from the unregulated market into the legal market, which represents a huge untapped opportunity in California.
- A family-oriented brand, HSSG's cannabis brand Papa's Herb™ supports generational family farms by sourcing from regulated farms throughout the Emerald Triangle, while aiding these heritage farms to navigate through the dynamic and regulated market.
Commenting on the Agreement, Afzal Hasan, President and General Counsel at Origin House said, "Papa's Herb™ is a truly unique brand that has come to stand for high-quality, value-focused cannabis products while remaining equally committed to sustainability and the community. We are pleased to partner with yet another authentic California cannabis brand to take on an important and growing segment in the California market. This Agreement aligns with and advances our stated strategy of becoming a preeminent global house of experiential brands by expanding our growing portfolio of California brands, while helping preserve Humboldt County's cannabis legacy and shaping its future. We look forward to broadening our relationship with Papa's Herb™ through our Brand Accelerator Program and supporting their growth through our state-wide distribution footprint and key retailer relationships."
"Consumers are at the heart of our business. Continuum is committed to sourcing high quality cannabis products within each sub-category of the market to provide its retail partners and their ultimate customers with a curated selection of brands they can trust. To fulfill that embedded promise, we rely on the quality and consistency of Humboldt cannabis brands such as Papa's Herb™ through our partnership with the Humboldt Sun Growers Guild. We're excited to onboard Papa's Herb™ products to our diverse platform and look forward to working with more passionate local California businesses to help bring their industry-leading products to consumers across the state," added Sadie Reyes, President of Continuum.
A spokesperson from Papa's Herb™, Max Benitah commented, "With Papa's Herb™, we're replicating the successful blueprint of building a product, that stands for quality and accessibility, while actively supporting the community we work in. We understand the importance of building brands and welcome the idea of working with like-minded businesses, such as Origin House, to accelerate brand growth in the cannabis marketplace."
About Humboldt Sun Growers Guild
Humboldt Sun Growers Guild is a consortium that represents regulated cannabis farms from around the Humboldt County community, whose legacy, heritage and culture of growing the best cannabis, stands strong. The Guild is also helping farmers obtain necessary permits, operate in compliance with current laws, and implement responsible practices, such as proper water storage. The Guild also works with government officials and advocates on behalf of its members.
About Papa's Herb™
Based out of California, Papa's Herb™ is a family brand, that has formed strong alliances with regulated OG farms within the Emerald Triangle. Papa's Herb™, represents our family lineage and history behind this glorious plant. Our quality flower is always sourced with that same origin of family and sustainability, by showing support to all the families and growers that are in our surroundings. Papa's Herb™ is a brand "by the people for the people", and we want to ensure that the people always have a quality source of affordable cannabis.
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.
1 According to New Frontier Data's 2018 Cannabis Industry Trends Report
SOURCE Origin House
For further information: Barry Nashchon, [email protected], 707-444-8783; 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