Cannabis Briefs for October 29, 2019October 29, 2019
•Breakthru Beverage Canada’s cannabis-focused subsidiary Kindred has formed partnerships with Canopy Rivers, the venture capital arm of Canopy Growth, and TerrAscend Corp. Because Canopy Rivers is technically a separate company from Canopy Growth, the deal doesn’t extend to the latter. The new partnerships make Kindred the exclusive broker of Canopy Rivers’ and TerrAscend’s recreational products in Canada, and it will provide marketing and brand-building services. Additionally, Julian Burzynski, regional president of Breakthru Canada, has joined Canopy Rivers’ Strategic Advisory Board. Canopy Rivers holds a stake in TerrAscend.
•Las Vegas, Nevada-based cannabis producer and retailer Planet 13 is launching Elysium, a line of THC sparkling water. Elysium comes in five flavors: Valencia Orange, Persian Lime, Eureka Lemon, Wild Berry, and Ruby Red Grapefruit (all 10 mg. a 12-ounce can). More varied dosages and ratios of THC and CBD are planned for the future. Individual cans will be available at dispensaries throughout Nevada, with pricing still to be determined. Planet 13 is also planning to launch edible product lines Dreamland Chocolates and HaHa Gummies.
•NFL Hall of Fame running back Franco Harris has joined CBD company DouleuRx as an investor and partner. As part of the agreement, Harris will become a member of the product development and marketing team, contributing to expansion plans for the brand. The Chicago-based company is a vertically integrated manufacturer of THC-free CBD products that include pain relief cream ($90, 1,200 mg.), tinctures ($80 for 1,000 mg.), and Five Hour Energy style CBD shots ($35 a 12-pack, 10 mg. each).
•Boulder, Colorado-based Wana Brands has partnered with edibles company Azuca to expand its product line. Azuca sells a variety of specialty infused products including sugar, shortbread cookies, and dark chocolate coins in Massachusetts. The company also has a proprietary infusion process that delivers faster onset times that Wana will license for their line of edibles. Wana distributes to Arizona, California, Colorado, Illinois, Michigan, Ohio, and Oregon.
•Hexo is laying off approximately 200 people in an effort to reduce costs and achieve profitability. The cuts will reportedly be spread across the company, impacting all departments. Among those leaving are chief manufacturing officer Arno Groll and CMO Nick Davies. As a result, the company will shut down several greenhouses it operates in Ontario. The decision follows Hexo’s withdrawal of its 2020 financial guidance amid sales that fell short of expectations. The company totaled around 1,100 employees, according to a filing from May.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.