Origin House Launches Integrated Cannabis Distribution Platform in California – ‘Continuum’ and Provides Update on Status of Debt Conversion
Ottawa, Canada – March 12, 2019 – 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 the launch of Continuum, its wholly-owned California-based distribution platform, formed through the operational integration of RVR Distribution and Alta Supply. The Company also provided an update on the status of its debt conversion.
- Continuum is the business name for RVR Distribution, the first locally licensed distributor in West Sacramento, California, and Alta Supply, one of the first licensed distribution companies in Oakland, California.
- Through three fully-licensed facilities in Alameda, Yolo and Orange counties and over 90 employees, Continuum has state-wide presence and offers coverage across Northern and Southern California.
- With a growing network of brand partners and retailers, Continuum is well positioned to ensure a reliable, safe and compliant supply chain to drive success for its partner and customers.
- Continuum is continuing to add exclusive distribution partnerships with premium California cannabis brands such as those signed in past months with Henry’s Original, Utopia, Humboldt’s Finest, Viola and Kurvana.
- Experts in business-to-business operations, Continuum works with licensed retailers, cultivators and manufacturers in the state of California to carefully curate brands and streamline industry-leading processes.
Afzal Hasan, President and General Counsel of Origin House stated, “Our California brand focussed business model is powered by statewide distribution. We made strategic acquisitions of companies which had established market know-how and local relationships – RVR Distribution and Alta Supply – and consolidated these companies’ operations, into Continuum. Origin House has continued to develop its brand support services, to include contract cultivation, manufacturing and sales, to establish itself as a premier cannabis brand development platform in California focussed on accelerating the growth of its partner brands.”
Sadie Reyes, President of Continuum commented, “Independently, Alta Supply and RVR Distribution were key players in the California cannabis marketplace, but with our strengths combined under the Origin House umbrella, we are confident to become the partner of choice for growers and retailers in the state. The Continuum brand is founded on relationships and propelled by vision, market expertise and a broad reach. Customers are at the heart of our business and we look forward to combining synergies to ensure success for partners as well as ultimately, consumers.”
Continuum’s corporate identity embodies its strategy to become the most prominent cannabis distribution platform in California. The lemniscate (also known as the infinity symbol) in the logo visually symbolises Continuum’s dedication to unity, limitless possibilities and strength. As a part of the launch of Continuum’s identity, the company has also launched a new website, trustcontinuum.com.
Update on Debt Conversion
On February 26, 2019 Origin House announced that it had elected to exercise its right under the indenture date July 12, 2018 (the “Indenture”), governing the Company’s 8% unsecured convertible debentures due July 12, 2021 (the “Debentures”) to convert the principal amount of the outstanding Debentures to common shares of the Company (“Common Shares”).
As of the close of market on March 11, 2019, approximately C$26.3 million of the total C$33 million raised had already been voluntarily converted to equity, representing about 80% of the Debentures issued pursuant to the Indenture.
In accordance with the terms of the Indenture, Origin House delivered notice to registered holders of Debentures (the “Debenture holders”) that, effective February 25, 2019, the volume weighted average trading price of the Common Shares on the Canadian Securities Exchange (the “Exchange”) was greater than $9.00 for 10 consecutive trading days. Accordingly, the Company confirmed that on March 28, 2019 (the “Mandatory Conversion Date”), the then outstanding Debentures will be deemed to be surrendered for conversion to Common Shares. The Debentures currently trade on the Exchange under the ticker symbol ‘OH.DB’, and, in accordance with CSE procedures, will be halted at 12:00pm EST and delisted at market close on the Mandatory Conversion Date.
On conversion of the outstanding Debentures, and based on the current outstanding share count, the total number of Origin House shares outstanding will be 72.3 million (including Common Shares and Class A compressed shares).
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.
For further inquiries, please contact:
Marc Lustig, Chairman and CEO
Jonathan Ross, Origin House Investor Relations
LodeRock Advisors Inc.