CannaRoyalty Corp. (CSE:CRZ) and Trichome Yield Corp. closed their first investment of $500,000 in 180 Smoke last week. The investment marks the first significant strategic partnership for Trichome, an investment firm, and a subsidiary of CannaRoyalty Corp.
Since its inception in January of this year, Trichrome has offered a suite of asset-backed lending options that cater to the Canadian cannabis community. Until legalization, traditional lending opportunities for cannabis are few and far between. CannaRoyalty utilizes Trichrome as a means to legally fund the underserviced cannabis sector in Canada. Simultaneously, this strategy diversifies their portfolio with successful ancillary companies, such as 180 Smoke.
180 Smoke is a dispensary and online retailer specializing in vape cartridges and accessories. CannaRoyalty and Trichrome both promise an aggregate of $2.5 million to fund 180 Smoke’s expansion within the Canadian sector.
The vape retailer already operates fourteen retail stores in Toronto, and they have seven permits for Saskatchewan in the pipeline. 180 Smoke also plans to apply for ten more retail permits in Alberta with CannaRoyalty’s investment.
The partnership was first announced on March 14 in anticipation of Canadian legalization later this year. 180 Smoke’s reputation for successfully navigating the regulated market makes them a valuable asset to CannaRoyalty’s portfolio. Last quarter proved promising as the vape retailer had a record growth of 51 percent.
“With coast-to-coast reach online and significant brand awareness among cannabis consumers, 180 Smoke is perfectly positioned to capture a significant portion of the Canadian cannabis and vaporizer market,” Ashutosh Jha, President of 180 Smoke, noted in a statement.
180 Smoke’s web presence is impressive. Their site attracts 64 percent of Canada’s vape-related web traffic, and they see nearly 200,000 new customers every month. The company draws more traffic than any other vape site in Canada. CannaRoyalty CEO Marc Lustig recently praised their efforts.
"From CannaRoyalty's perspective, 180 Smoke represents a key piece to our growing international distribution pipeline that will allow us to collaborate with our growing portfolio of consumer cannabis brands in the Canadian marketplace," Lustig said Friday.
180 Smoke’s business model and substantial web presence give the retailer what Lustig calls an “entrenched retail network.” The huge consumer base gives CannaRoyalty a strong footing in a vaping market that sells to both nicotine users and pot smokers. Along with 180 Smoke’s financial performance – over $2 million in sales last quarter, this auspiciously positions 180 Smoke against the retailers CannaRoyalty already works within California.
According to a statement, both companies are looking to diversify their holdings in the marijuana market. Teaming up together just in time for full legalization puts CannaRoyalty and 180 Smoke in a strong position in a market that is expected to flourish in the coming months.