Origin House, a North American cannabis products and brands company, announced today that it has completed the previously announced acquisition of 180 Smoke and its affiliates.
- 180 Smoke’s established Canadian footprint, proven retail experience and expertise building high-margin consumables brands in a highly regulated, competitive market provides a unique go-to-market opportunity for Origin House’s portfolio of California tested cannabis brands.
- Adds revenues from rapidly expanding nicotine vape (“Vape“), e-juice manufacturing and cannabis hardware business which generated $11.7 million in net revenue in 2018, up 50% from $7.8 million in 20171.
- Accelerating growth profile. 180 Smoke has 23 operating Vape storefronts, with more under development. 180 Smoke plans to aggressively grow its online and wholesale channels, as well as its strategic manufacturing business.
- The vast majority of 180 Smoke’s tier-1 Canadian brick and mortar locations are well-positioned to dispense cannabis products.
- 180 Smoke has established key relationships with popular international Vape brands, as well as larger players entering the harm reduction space. 180 Smoke is one of the distributors of JUUL products in Canada and is also a national retail distributor to Imperial Tobacco Canada for its Vype ePod and ePen brands and glo Heat Not Burn (HNB) brand.
- Over 80% of 180 Smoke’s Vape consumers are also potential cannabis users2, creating a unique crossover opportunity that is expected to enable Origin House’s California tested brand partners access to a rapidly-growing, repeat, online and retail customer base.
- 180 Smoke’s subsidiary, 420 Wellness Inc. currently has two development permits in place for cannabis storefronts under the brand ‘360 Cannabis’ in Calgary and Lethbridge, Alberta, with plans to open additional locations as approvals are received.
Commenting on the announcement, Afzal Hasan, President of Origin House, said, “The close of this Acquisition marks a major milestone in the Origin House story, and sets the foundation for a strategic, accretive expansion into the Canadian market, with plans to leverage 180 Smoke’s expertise in other global markets in the future. Given the lack of compelling products and brands on-offer for consumers in Canada, including those expected to come to market one year post-legalization, the market is ripe for disruption. We are confident that the combination of 180 Smoke’s proven ability to build a high-margin, branded consumables product portfolio in an extremely fragmented market, along with Origin House’s portfolio of consumer-led brands emanating from the most dynamic legal cannabis market in the world today, will translate into rapid growth as the Canadian market continues to evolve.”
“We are very pleased to become part of Origin House,” said Ashutosh Jha, President of 180 Smoke. “Collectively, we bring a constructive, innovative and prudent approach that makes us a valuable and loved partner to our customers, colleagues and the wider populus. Through additional capital, industry expertise and an established Californiadistribution and brand blueprint, Origin House will accelerate 180 Smoke’s mission of harm reduction from combustibles, and 360 Cannabis’ focus of highlighting the harm reduction properties of cannabis. We look forward to utilizing this support to drive significant growth and profitability over the next two years, both on the Vape and cannabis sides of our business.”