Origin House Signs Exclusive Distribution Agreement and Provides Strategic Financing to Utopia Cannabis
- Utopia is an award-winning cannabis flowers, edibles and extract brand in the California market that recorded wholesale revenue of US$725,000 in December 2018.
- Origin House has advanced an additional US$750,000 in financing to Utopia, following the successful and early repayment of Origin House’s initial US$750,000 investment.
- In conjunction with this additional financing, Origin House will take over the exclusive distribution of Utopia’s premium cannabis flower from a third-party distributor.
Ottawa, Canada – January 30, 2019 – 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 agreed to provide additional strategic financing of US$750,000 to Utopia Cannabis (“Utopia”), 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.
Utopia™ is a leading cannabis brand focused on curating clean, premium products for California consumers. Since 2014, Utopia has been a leading cultivator and manufacturer with the debut of their signature C. Banana strain. Committed to pure, best-in-class cannabis, Utopia has won over three dozen awards for quality, innovation and consistency. Consumers can find Utopia products at retailers throughout California and connect with the brand at www.utopiacannabis.com , email@example.com or via social media @utopia.ca.
 Based on annualized December sales as reported to Origin House by Utopia (unaudited)
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.