Two of legal marijuana’s largest corporations are joining forces with a legendary cannabis genetics outfit, creating an unprecedented joint venture that will sell some of pot’s most recognizable brands throughout Canada, eventually selling in international markets.
The deal’s individual players, who are among the industry’s most noteworthy, are calling the partnership “the largest global cannabis partnership to date.”
The players are Ontario-based Canopy Growth, considered the world’s largest cannabis company, with a market cap of $3.8 billion; Colorado-based Organa Brands, the U.S.’s most ubiquitous marijuana brand, thanks to its flagship OpenVape products; and Netherlands-based Green House along with its sister brand Strain Hunters, known for their influential genetics, popular consumption clubs, and globetrotting documentaries.
The collaboration will operate through Canopy Growth’s federally licensed Agripharm facility in Creemore, Ontario, with Canopy Growth issuing shares to Green House and Organa Brands in exchange for exclusive licenses in Canada for proprietary technology, genetics and intellectual property.
“These individual businesses each bring an interesting combination of experience, brands and entry points into the sector,” Canopy Growth CEO Bruce Linton told Joint Ventures this week. “It’s almost as if we’re making a rope with these different threads, and it feels like another industry first when you look at what we’re trying to do with this collaboration—since we’re bringing this level of expertise and experience and wrapping it all into a fully compliant, Health Canada-certified building.”
The deal also includes the exclusive distribution of all Organa Brands and Green House products via Canopy Growth’s national channels—and the opportunity for international growth, since Canada’s federally legal market can export cannabis products to countries that allow the importing of marijuana.
“These groups, we’re are all entering into a partnership to explore the world,” Peter Miller, Agripharm’s CEO who comes to this position through his work with Green House and Strain Hunters, said. “There’s an ambition to work together globally, similar to how we’re working together in Canada.”
Added Organa Brands co-founder Jeremy Heidel: “This is a true collaboration, providing an international home base for all three of us. To have a foundation in Canada and collaborate around the world in other federally regulated markets—with these three companies working together worldwide—is very much what we’re going for. And to have created this kind of reach overnight is just amazing.”
Organa Brands already sells its OpenVape, Bakked, Magic Buzz, and District Edibles products in eleven U.S. states and Jamaica, and Heidel confirmed that his team has been actively looking to expand to Germany, Switzerland and other European countries. This deal may very well expedite that process for Organa Brands.
“Canada is the largest federally legal adult-use market at the moment with upwards of 36 million people, but when you think about how much headroom there is, we’ve barely scratched the surface,” Heidel added. “Especially since we’ll be working together with Canopy Growth and Green House, the rest of the world is our oyster.”
While Canopy Growth and Organa Brands are among North America’s largest marijuana businesses, Green House and its notable founder Arjan Roskam are the industry veterans of the group.
The first Green House Coffee Shop opened in Amsterdam in 1985, and three other 420-friendly locations followed in the Dutch cas did a consumption-friendly Strain Hunters Club in Barcelona. Green House genetics, including world-famous strains White Widow and Super Lemon Haze, have won more than 40 Cannabis Cups, and the group’s plant-centered Strain Hunters documentaries have more than 150 million views.