CannaRoyalty Corp. d/b/a Origin House, a leading North American cannabis products and brands company, today announced that it has entered into a Brand Accelerator Program agreement with Mendocino-based cannabis producer, Heritage Holding of California, Inc. d/b/a Henry’s Original. California cannabis brand Henry’s Original, winner of the GreenState Cannabis Award in 2018 for ‘Excellence in Products’, markets hand-crafted flower and premium pre-rolls from the finest heirloom cannabis grown in Mendocino County.
- Upon the completion of this deal, Henry’s Original-branded products will be distributed exclusively in California by Origin House’s wholly-owned distribution subsidiary, RVR Distribution (“RVR”), terminating Henry’s distribution arrangements with other third-party distributors across the state. Henry’s Original-branded products are currently carried in approximately 200 dispensaries across California.
- Origin House has agreed to provide a convertible bridge loan of US$2.5 million to Henry’s to fund growth expenses, including construction and operation of additional cultivation sites for the 2019 growing season, increasing the brand’s production capacity and revenue potential.
- This Agreement follows a previously announced brand acceleration and community support initiative whereby Origin House invested US$2.5 million towards the purchase of premium cannabis flower from Mendocino Countyfarms. The flower provides Henry’s with substantial inventory to fuel immediate sales growth on RVR’s distribution platform.
- Origin House has an established footprint in California and now Canada, with its recent acquisition of 180 Smoke. The Company has a right of first offer with regards to the production, sale, licensing and/or distribution of Henry’s Original-branded products across North America.
“Henry’s Original was one of the first brands we partnered with under our innovative and growing Brand Acceleration Program. Our original partnership with Henry’s bolstered their ability to meet consumer demand for its heirloom Mendocino-grown cannabis, while giving us the opportunity to financially support local Mendocino farmers,” commented Afzal Hasan, President and General Counsel of Origin House.
“With our expanded relationship, we are providing short-term growth capital to further develop Henry’s cultivation capacity, and simultaneously introduce Henry’s Original products statewide through RVR’s distribution platform. This Agreement advances the Company’s mission of becoming a preeminent global house of cannabis brand by expanding our growing portfolio of California brands, while accelerating the growth of entrepreneurs with authentic brands sought after by consumers,” Mr. Hasan added.
Joshua Keats, President of Henry’s Original said, “We are excited to strengthen our partnership with Origin House. The Origin House team’s continued confidence and support allows Henry’s to distribute our hand-crafted flower and premium pre-rolls from the finest heirloom cannabis to reach more consumers in California. We are confident that this Agreement will help us accelerate growth, increase market share and position the company for future expansion.”