CannaRoyalty Corp C.CRZ

Newsletter Q&A with management

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Q. How do we rebuff hostile, unwanted or premature acquisition or merger attempts on Origin House?
There is a growing trend within the cannabis sector of hostile consolidation transactions with companies using their stock as currency. To protect shareholders from such coercive activity, Origin House recently announced the signing of voluntary voting support agreements. Read the full news release here.
 
Q. Do you see your position as middle-men between growers and retailers to be a limited and possibly temporary strategy as compared to vertically integrated businesses?
Our business strategy goes beyond being a middle-man between growers and retailers. We are laser-focused on building a strong foundation based on a unique strategy that will position Origin House to be the leading global house of brands. We’ve already built a strong framework that consists of manufacturing, distribution, logistics capabilities and added talented people to our team to ensure success for our brand partners. We will progressively internalize authentic brands and accelerate growth, replicating the blueprint in new markets. Stay tuned for more, in 2019! 
 
Q. With many US states legalizing cannabis, does Origin House have a current plan in place to enter into other states with the same approach that has made it possible to acquire the dominant position it holds in California?
We are alwayslooking and exploring new markets, but we will enter when it makes business sense for us to do so. We’re keeping a keen eye open and when the regulations change and permit us to trade on other exchange, we will explore the opportunity 
 
Q. How does the Ontario government’s decision to allow only 25 cannabis stores impact your plans for 180 Smoke?
180 Smoke already has strong retail capabilities for the expanding nicotine vape e-juice manufacturing and cannabis hardware business which generated $11.7 million in net revenue in 2018, up 50% from $7.8 million in 2017. The limitation of 25 licenses does not impact our plans for 180 Smoke. We will continue to expand our footprint and as the Canadian cannabis landscape continues to evolve, we look forward to adding cannabis retail to our 180portfolio.