Cannabis brand house TREC Brands revealed Tuesday that it has entered into a definitive agreement to buy Agripharm Corp., a licensed producer of consumer cannabis products. Agripharm has a provincial supply agreement by which it covers 75% of the Canadian market. The purchase price was not disclosed.
The transaction is expected to close as early as January,Diversifying Product Portfolio
Via this purchase, TREC will diversify and increase its portfolio of products to more than its current 50 SKUS, including popular U.S. brands. The union of TREC and Agripham is expected to accelerate TREC's position in a maturing industry poised for growth, further fueling the company's momentum following two years of success with brands like Thumbs Up, Blissed and WINK.
Through this acquisition, TREC will also secure exclusive Canadian rights to the award-winning U.S. consumer brands Bakked and O.pen.
"With proven success in supporting the release of innovative cannabis products to the delight of customers, we're ready for our next phase of growth," said Trang Trinh, CEO of TREC Brands.
"We are continuously looking for ways to enhance our platform and combining forces with Agripharm, whom we partnered with for the release of our inaugural SKU WINK No.01, is the right strategic next step in delivering even more happiness and value to our customers. Together, we're a team of the world's leading cannabis brand builders and industry-leading cultivators, processors, and curators," Trinh added.
Peter Miller, founder and CEO of Agripharm Corp highlighted the projected growth of the Canadian cannabis market, which is estimated to reach $6.4 billion by 2024.
"In this market, it is vital that cannabis companies stand out with a strong product strategy that is aligned with consumer taste and demand. Based on the combined track record and our shared vision for the future, we are very optimistic about what the expanded TREC team will accomplish," Miller noted.
Photo: Courtesy of CRYSTALWEED cannabis on Unsplash
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
The Benzinga Cannabis Capital Conference is coming to Florida
The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.
Get your tickets now on bzcannabis.com – Prices will increase very soon!