Origin House Announces Strategic Partnership with Premium Cannabis Brand Kurvana

Published: February 19, 2019

Origin House Announces Strategic Partnership with Premium Cannabis Brand Kurvana

CannaRoyalty Corp. d/b/a Origin House, a North American cannabis products and brands company, today announced that the Company has signed a memorandum of understanding (“MOU”) to take over the exclusive distribution of Kurvana products across Northern California, thus terminating Kurvana’s distribution arrangements with other third-party distributors in that region. As part of the MOU, the parties have also agreed to explore the transition of distribution in Southern California, subject to fulfilment of mutually acceptable conditions.

Kurvana is the leading premium vape pen brand in California, currently ranked as the fifth1 brand in revenue overall in California. Origin House’s subsidiary, RVR, has distributed Kurvana-branded products since December 2015 and has historically held non-exclusive distribution rights in Northern California.

“Through its unique approach of creative engineering, scientific discovery, and manufacturing excellence, Kurvana has established itself as the leading premium California cannabis brand with impressive revenue growth, year over year,” said Afzal Hasan, President and General Counsel at Origin House. “As an existing distributor of Kurvana-branded products in Northern California, we have first-hand insight into the brand’s popularity and potential for future success. Through this arrangement, we are excited to reinforce our relationship with Kurvana and support its mission of delivering best-in-class cannabis products to California’s discerning consumers. We are confident that our partnership will form a solid foundation for Kurvana’s growth trajectory, while offering significant benefits to Origin House shareholders.”

“Our number one priority for 2019 is to solidify Kurvana’s dominance in the California market, the largest cannabis market worldwide,” said Drew Cesario, Regional Sales Manager at Kurvana. “A strategic partnership with Origin House and their extensive distribution platform will be a key component to accelerated growth in the Northern California region. We are thrilled to deepen our relationship with Origin House and optimistic for the year ahead.”

Under the Company’s brand acceleration program, Origin House has agreed to provide strategic financing of up to US$10 million (the “Financing”) to Kurvana under a promissory note. Up to US$4 million of the Financing will be available to Kurvana to draw on immediately and the remaining US$6 million will be available subject to fulfillment of certain conditions.