Canada-based vape product retailer 180 Smoke has secured the initial investment of $500,000 under the $2.5m credit agreement from CannaRoyalty and its subsidiary Trichome Yield, to expand its business.
Of the total amount, both companies have invested $250,000 each, under the initial tranche of the credit agreement.
CannaRoyalty CEO Marc Lustig said: “From CannaRoyalty’s perspective, 180 Smoke represents a key piece to our growing international distribution pipeline that will allow us to collaborate with our growing portfolio of consumer cannabis brands in the Canadian marketplace.
“Trichome elected to invest directly in 180 Smoke as it represents a very attractive credit opportunity from a number of perspectives, strong and sustained revenue growth, profitable history and an attractive balance sheet.”
Furthermore, the agreement will offer an additional investment of up to an aggregate of $2.5m in the future.
The retailer will use the investment to support the expansion of its vape retail footprint. It will also work together with CannaRoyalty to establish a cannabis retail business in Saskatchewan and Alberta provinces.
The company is planning to adopt a hybrid vape retail model with the addition of a diversified line of business in line with the recent announcement of full legalisation of cannabis products in Canada.
The vape retailer currently has applied for retail permits in seven jurisdictions in Saskatchewan and will apply for up to ten permits in Alberta. All of them are subject to approval.
180 Smoke president Ashutosh Jha said: “Looking ahead at adult-use cannabis legalisation in Canada later this year, we are pleased to partner with CannaRoyalty and Trichome to access both product and distribution expertise as well as capital, to pursue our hybrid vape and cannabis model.”
Based in Canada, the retailer currently sells vape and nicotine-related products, herbal vaporiser products and parts across its stores.