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," 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," Koffler said.
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
Forward-Looking Information
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.
Actual results could differ materially from those currently
anticipated due to a number of factors and risks. Readers are
cautioned that the foregoing list of factors is not exhaustive. The
forward-looking statements contained in this news release are made
as of the date of this release and, accordingly, are subject to
change after such date.
Newstrike does not assume any obligation to update or revise any
forward-looking statements, whether written or oral, that may be
made from time to time by us or on our behalf, except as required
by applicable law.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Up Cannabis
