CannTrust Holdings (TSX:TRST) announced an exclusive partnership with alcohol broker Breakthru Beverage Group.
As quoted in the press release:
Breakthru will invest in the establishment of a cannabis-focused sales brokerage company and develop a route-to-market platform for CannTrust in Canada, effective when the adult-use recreational market opens October 17, 2018. In addition, Breakthru is aligning as a strategic partner with CannTrust through a company investment, as it sees the organization as a long-term market share leader. The transaction remains subject to typical closing conditions, including the signing of a definitive agreement, completion of due diligence and TSX’s approval of the private placement.
“We’re excited to work with the most respected producer in Canada and leverage our well-established business model, which will put us at the forefront of shaping a high performing organization and socially responsible industry,” explained Danny Wirtz, Vice-Chairman of Breakthru Beverage Group. “This is a logical extension of our expertise and provides a new growth opportunity into this emerging market.”
The cannabis sales brokerage operation will reside in a newly-formed subsidiary of Breakthru Beverage Group and will be entirely separate from its beverage alcohol brokerage, Breakthru Beverage Canada. It will however leverage the company’s North American business insights, strategies, technology and analytic tools to be a differentiator in the marketplace.