Up Cannabis Announces Strategic Investment in Green Tank Technologies
TORONTO, March 28, 2019 /CNW/ - Newstrike Brands Ltd. (TSX-V:HIP) ("Newstrike" or the "Company"), is pleased to announce that it is making a US$5 million investment in Green Tank Technologies ("Green Tank"), one of North America's premiere manufacturers of cannabis vape hardware and technology. The investment by Newstrike strengthens the existing partnership between Newstrike's wholly-owned subsidiary, Up Cannabis, and Green Tank, as both companies prepare for the legalization of cannabis oil vaping.
In anticipation of revised cannabis regulations coming into force in late 2019, we are gearing up for the commercial launch of our full line of cannabis vape products. Our strategic investment in Green Tank puts us in a strong position to become a preferred supplier of end-to-end vape solutions to the adult use recreational market
said Mark E. Burton, Chief Strategy Officer, Newstrike Brands.
Data from jurisdictions such as California, where the vaping of cannabis extracts has been legal for some time, indicate that this form of cannabis consumption is growing at a high rate and already accounts for roughly 30% of consumption. Accordingly, we expect vape products to be a significant part of our overall revenue profile. We are excited to be working closely with Green Tank to design and deliver industry-leading hardware that is specifically designed to work seamlessly with our unique cannabis extracts
Newstrike's equity stake in the proven vaporization hardware and technology provider follows on Up Cannabis' September 2018 supply agreement with Green Tank for private-label vaporization hardware.
Our investment in Green Tank is an important component of our innovation strategy, giving us access to leading edge, cannabis specific vape hardware, new product development and R&D. It complements perfectly the significant investments we are making in advanced extraction technology and cannabis oil production capacity
This cornerstone investment from Newstrike, along with the additional funds raised from our other strategic investors as part of our Series A financing, will allow Green Tank to execute on our growth plans across North America over the coming years
said Dustin Koffler, CEO of Green Tank Technologies.
We are excited to be partnered with Newstrike and Up Cannabis and are proud to have their support as both a customer as well as an investor, particularly as these products become legal for sale to consumers in Canada
Newstrike is the parent company of Up Cannabis Inc., a licenced producer of cannabis that is licenced to both cultivate and sell cannabis in all acceptable forms. Newstrike, through Up Cannabis and together with select strategic partners, including Canada's iconic musicians The Tragically Hip, is developing a diverse network of high quality cannabis brands. For more information, visit http://www.up.ca or http://www.newstrike.ca
This news release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Newstrike to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements include, but are not limited to, statements relating to Newstrike's expectations with respect to the legalization, supply and sales of cannabis and cannabis vaporizers in Canada. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties.
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SOURCE Up Cannabis