CannaRoyalty said two California companies it is acquiring have received licenses to operate in the state’s new recreational cannabis market, positioning the Ontario-based business to capitalize on the largest legal cannabis market in the world.
Alta Supply’s license, acquired Jan. 2, allows it to distribute CannaRoyalty’s own brands – plus products for over a dozen cannabis companies – throughout California.
Kaya Management’s license, acquired Dec. 30, enables the company to sell its vaporizer products in the state.
CannaRoyalty – an investor and operator in the cannabis market – announced plans to acquire Alta and Kaya in late November. CannaRoyalty is traded on the Canadian Securities Exchange under the symbol CRZ
“We will continue to be razor-focused on transactions that give us manufacturing, distribution and branded products in California,” CEO Marc Lustig told Marijuana Business Daily.
Its portfolio in California also includes edibles maker Soul Sugar Kitchen, vape pens/cartridge maker GreenRock Botanicals and a partnership with cannabis distributor River Collective.
What you need to know
- Sales from Kaya and Alta over the past 12 months were almost $10 million.
- Resolve Digital Health inked a deal with Aphria, (Toronto Stock Exchange: APH), one of Canada’s largest licensed producers. CannaRoyalty owns a stake in Resolve Digital Health.
- Aurora (Toronto Stock Exchange: ACB) and CannaRoyalty are currently engaged in negotiations to license CannaRoyalty products in Canada, Europe and Australia.
- Jan. 1 marked the first day of adult-use legalization in California.
- The Golden State is the largest cannabis market in the world, with approximately $1.3 billion-$1.6 billion in medical marijuana sales in 2017, according to Marijuana Business Daily projections. California’s recreational MJ market could generate over $4 billion in sales in a few years, MJBizDaily estimates.
Matt Lamers can be reached at [email protected]
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