48North Cannabis Corp (TSXV: NRTH) has disposed of its US-based assets as the company refocuses and places a “renewed emphasis on high-quality Canadian products.” The divestment consists of two relatively recent acquisitions within the US cannabis accessories space.
In particular, 48North will be disposing of Sackville & Co. Merchandising, which was acquired only month ago on October 10, 2019, for a total figure of USD$789,735 (C$1.1 million). Sackville at the time of acquisition was described as being a cannabis accessories brand house for women, creating “chic looking” cannabis accessories, such as grinders, by utilizing high-end materials.
48North will also be disposing of Rare Industries, also known as Quill, a multi-state vape technology brand that was acquired at the end of August for a total figure of US$2.1 million (C$2.9 million). While not directly touching any cannabis plant or being involved in any cannabis manufacturing, the firm boasted at the time that as a result of the acquisition, 48North could be referred to as a multi state operator, with sales in Oregon and Washington and near-term plans for California and Nevada.
The assets were sold off for an undisclosed sum to an unidentified party. Charles Vennat, CEO of 48North, described the move as “positioning [48North] to devote ourselves exclusively to the Canadian adult-use market in 2020.” Meanwhile, the company described the move as “sharpening” its focus on the Canadian market.
48North last traded $0.30 on the TSX Venture.
Information for this briefing was found via Sedar and 48North Cannabis Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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