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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.