Up Cannabis Announces Strategic Investment in Green Tank Technologies
Investment Will Support Upcoming Launch of Up Cannabis Vape Products
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,” Burton added.
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.
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.
About Newstrike and Up Cannabis
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