British Columbia-based craft marijuana company 1 Life Cannabis now has a new majority shareholder with a 51% acquisition by RavenQuest BioMed Inc. (CSE: RQB; OTCQB: RVVQF).
The $1 deal will see 1 Life Cannabis providing an ongoing 15% revenue fee for all produced product to RavenQuest.
Although the dollar amount of the deal is extremely low for acquiring a majority stake, 1 Life will be granted access to RavenQuest’s grow methodologies and environment-control processes for the company’s Abbotsford grow facility.
Designs for that projected 24,000 sq. ft. facility are pending approval from the federal government. Additionally, 1 Life will be granted an extension of RavenQuest’s existing cannabis cultivation licensing from Health Canada.
Citing a high consumer demand for products with distinctive qualities from specialized brands, RavenQuest Chief Executive Officer George Robinson had this to say about the acquisition:
Jumping into the industry with the passage of the Cannabis Act, RavenQuest completed a first full legal business-to-business cannabis sale in early December of 2018.
Later that month, Wayland Group (CSE: WAYL) subsequently struck a $2 million deal to acquire 8,000 kg of dried flower cannabis from RavenQuest throughout the course of 2019.
The company currently operates cannabis production facilities in Edmonton and Markham, which produce two flagship brands.
The Lore line of cannabis products is aimed at female consumers in the 30+ age bracket, while the Bloomera line focuses on male customers in the same age range with varying THC and CBD amounts for different user experiences.
Although direct advertising of products is banned, different branding based on age and gender has become more common since marijuana was legalized in Canada, with companies such as Eve & Co. aiming directly at the female consumer base.
With 1 Life Cannabis added to the RavenQuest stable, a new line of high end, artisanal style marijuana products is expected to be announced in the coming months.
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