Cannabis business Hemp Inc. and e-cigarette manufacturer VaporBrands have signed a letter of intent to create a joint venture to develop and distribute a brand of specialty vaporizing products. The products will be sold through existing medical marijuana networks as well as paraphernalia stores, because the products themselves do not contain marijuana.
The partnership could help both companies gain market share in the booming paraphernalia industry, which last year generated $9.7 billion in revenue and employed 41,930 people, according to HQ Magazine.
Both companies trade on the over-the-counter markets. Hemp Inc. focuses primarily on industrial hemp while VaporBrands manufactures electronic cigarettes.
Hemp Inc.’s wholly-owned subsidiary, Marijuana Inc., will oversee the partnership with VaporBrands.
In addition to creating non-marijuana vaporizing products, the partnership will also see both companies produce and distribute a vaporizer product that is specific to using hemp oil. Hemp Inc. will also help VaporBrands expand the distribution of its current and future line of electronic cigarettes.