Breakthru Beverage Group, the alcohol wholesale business co-led by Blackhawks Chairman Rocky Wirtz, announced plans Monday to invest $9.2 million in CannTrust, a Canadian marijuana producer.
Breakthru has signed a letter of intent to become the exclusive distributor for CannTrust as recreational marijuana is set to become legal in Canada on Oct. 17. In doing so, Breakthru joins a growing number of major alcohol companies to recently invest in the global potential of the burgeoning marijuana industry. Giant beer companies such as Molson Coors — parent company of Chicago-based MillerCoors — and Constellation Brands, which bases its beer business in Chicago, are planning to develop and sell cannabis-infused drinks in Canada.
(click here to continue reading Wirtz-linked Breakthru Beverage invests $9.2 million in Canadian marijuana producer – Chicago Tribune.)
The great Green Rush of 2018 continues, unabated.
From the CannTrust press release:
The cannabis sales brokerage operation will reside in a newly-formed subsidiary of Breakthru Beverage Group and will be entirely separate from its beverage alcohol brokerage, Breakthru Beverage Canada. It will however leverage the company’s North American business insights, strategies, technology and analytic tools to be a differentiator in the marketplace.
“CannTrust has made significant investments in both capacity and innovation with the next generation of products such as edibles and cannabis-infused beverages expected to launch in 2019. We have a nano-technology that enables us to produce cannabis infused beverages neutral in taste, and clear as water. This technology will position us to be a leader in Canada, and in future markets globally.” Rogers added.
An affiliate of Breakthru Beverage Group will be purchasing 902,405 common shares of CannTrust at a purchase price of $10.23 per share for gross proceeds of $9,231,600. In addition, the affiliate of Breakthru Beverage Group will have options to purchase from CannTrust up to an additional 2,000,000 common shares in the aggregate at a price per share equal to a 15% discount of the 5-day volume-weighted average price on the TSX immediately prior to the date the applicable option is exercised, if CannTrust exceeds certain sale thresholds.
(click here to continue reading CannTrust and Breakthru Beverage Enter Exclusive Partnership in Recreational Cannabis Market in Canada | CannTrust.)
CannTrust About Us page:
CannTrust is a federally regulated licensed producer, who brings more than 40 years of pharmacy and healthcare experience to the Medical Cannabis industry. We apply this expertise to produce 100% pesticide free standardized Medical Cannabis for patients in need.
At CannTrust™ we are committed to research and innovation, as well as contributing to the growing body of evidence-based research regarding the use and efficacy of cannabis. Our product development teams along with our exclusive pharma partner Apotex are diligently innovating and developing products. CannTrust has been granted a Section 9 License by Health Canada under the Narcotic Control Regulations. This allows us to expand our product development and research to include pharmaceuticals in an effort to make it easier for patients to use Medical Cannabis today and in the future.
Our onsite laboratory with advanced technology and equipment for testing and research on the medical use of cannabis provides CannTrust with the ability to develop and rigorously test our products at any point.
We continue to evolve our patient and medical practitioner education program about Medical Cannabis, and have an industry leading compassionate use program to support patients with financial needs. We continue to expand to ensure we have a continuous supply of quality standardized products and superior customer service.
Our original 50,000-square foot state-of-the-art hydroponic facility is home to cultivating, processing extracts and our distribution center.
Our second facility is a 430,000-square foot greenhouse in the heart of the Niagara region. The facility is the first of its kind in the Canadian Cannabis industry to be designed and engineered using advanced perpetual growing technology. This facility is one of the largest in North America, with Phase 1 completed and Phase 2 to come on-stream in mid 2018.
(click here to continue reading About Us | CannTrust Medical Cannabis Producer Toronto.)