Blue Sky Hemp Ventures Ltd., a private Canadian company with a focus on whole plant utilization for hemp foods, extracts and sustainable industrial products announced that it has acquired True North Cannabis Corp's retail and bulk distribution assets including all True North’s current and future products.
True North is a leader in hemp-based CBD supply with growing proprietary distribution channels through wholesale bulk ingredients and branded, THC-free retail sales in medical and recreational markets.
“We are pleased to see our distribution businesses become part of the Blue Sky organization,” said Brett Halvorson, president and CFO of the company.
According to Andrew Potter, president and CEO of “The Blue Sky-True North the combination further leverages Blue Sky’s existing extraction facility and creates a winning platform for low-cost, high-quality CBD products – particularly as Health Canada deregulates CBD distribution in Canada.”
Strategic benefits of the combined company include:
- Revenue and Utilization Gains: Adding the True North products to Blue Sky’s portfolio is projected to add significant revenue in F2023 to Blue Sky’s business, increasing overall utilization at Blue Sky.
- High-Quality Carbon-Sustainable Retail CBD Products: Blue Sky’s whole plant utilization approach will allow the company to economically contract industrial hemp production to create high-quality and low-cost CBD extracts.
- Expanded CBD Innovation: True North is known for innovative, health and wellness-oriented products such as its CBD-infused Honey Sticks and high potency Nectar brand THC-free tinctures.
- Improved Positioning for Canadian CBD Deregulation: Blue Sky anticipates Health Canada will deregulate the distribution of CBD products in Canada over the coming years.
The combined company’s focus on whole plant utilization provides a structural cost advantage while also delivering a sustainable carbon footprint, added Potter.
Moreover, “True North and Blue Sky hold similar foundational mindsets focused on whole plant utilization for hemp, making them the ideal partner to capitalize and grow the True North brand going forward”, Halvorson added.
Canadian Cannabis Sales: Recently, Statistics Canada released September retail sales for Canada, with marijuana sales increasing from August marginally to C$389.9 million. Alberta, which is the second-largest province and also where Blue Sky is located, was up 2.0% from August and up 13% from a year ago, according to New Cannabis Venture's Alan Brochstein.
"August was revised from C$393.7 million to C$389.9 million," the analyst added.
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