48North Cannabis Corp. (TSX:NRTH) said Friday it has signed a definitive agreement to acquire Rare Industries, Inc., also known as Quill, a vape technology brand.
Quill’s products are being distributed in Oregon and Washington, with plans to reach California and Nevada. The company said this acquisition is its first attempt to reach the U.S.
“48North recognizes the importance of entering the burgeoning U.S market. I believe that authentic brands and next-generation products distributed at scale, particularly in the emerging U.S. market, will be one of the major keys to success in the cannabis industry,” Alison Gordon, co-CEO of 48North, said in a statement. “Without question, the Quill suite of products aligns closely with 48North’s growing portfolio of brands.”
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The total purchase price was set to $2.1 million out of which $641,000 is cash and $1.46 million is in the form of 48North’s common shares at a price of around 86 cents per share, the company reported.
48North plans to utilize Quill’s distribution network to promote its portfolio of brands in the U.S., and also to sell Quill’s products via its distribution networks in Canada.
“48North’s industry-leading focus on next-generation cannabis products and its brand-first consumer strategy will undoubtedly elevate Quill, its brand and products to the next-level. The U.S-based Quill team is eagerly looking forward to joining with 48North’s experienced and dedicated management team,” said Ian Van Vaughan Shaughnessy, co-founder of Quill.
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