CannaRoyalty (CSE:CRZ; OTCQX:CNNRF) announced two new business deals to acquire Kaya Management and Alta Supply, the exclusive manufacturer and license holder of rights and the distributor for the Bhang brand of vaporizer products in California.
As quoted in the press release:
Richard Sellers, majority owner of Kaya and Alta and an accomplished entrepreneur within the California cannabis market has agreed to join the CannaRoyalty executive team following closing of the Acquisitions.
“These Acquisitions are transformative for CannaRoyalty, and will provide the Company with foundational assets to execute on our California expansion strategy. Consolidated sales from Kaya and Alta over the past 12 months were approximately C$12.4 million and once this transaction is completed it will increase the Company’s existing revenue run rate significantly,” said Marc Lustig, CEO of CannaRoyalty. “With the advent of a full recreational market in California in January 2018, we believe Kaya and Alta are well-positioned to drive further revenue growth. The Acquisitions will also give us the right to produce and market one of the most awarded brands in the global cannabis space as well as access to an extensive network of California dispensaries.2 The acquisition of Bhang vaporizer products in California will further strengthen our market position in the vape/cartridge sector and provide a strong complement to our recently announced launch of GreenRock Botanicals.