CannaRoyalty announced it acquired exclusive California manufacturing and distribution rights to Bhang edibles and Bhang concentrates.
As quoted in the press release:
The Agreement also includes a right of first refusal (the “ROFR”) to license other future Bhang products within the edibles and concentrates categories in California.
Concentrates and edibles are the fastest growing segments in the California cannabis industry, accounting for over 46% of retail cannabis sales in California in 2017. Edibles, with a category share of 22%, are forecast to grow by 117% in 2018 while Concentrates at 24%, are projected to grow by 135%2.
“The award-winning Bhang edibles and concentrate lines are valuable additions to CannaRoyalty’s growing suite of premium consumer products. These products have been sold for years and are actively in distribution in California through our prospective acquiree, Alta Supply,” said Marc Lustig, CEO of CannaRoyalty. “The acquisition of exclusive license rights is expected to result in a substantial increase in throughput for our edible manufacturing operations in California. The Product Lines generated USD$5.6 million in combined revenue last year purely based on brand loyalty and with relatively limited resources committed by the previous license holder. Pairing the existing brand awareness of Bhang in the marketplace, with CannaRoyalty’s product and marketing expertise, capital base and broad California distribution footprint, will position the Product Lines to drive meaningful growth.”