Rare Industries, also known as Quill, has a product distribution network in Oregon and Washington and is preparing to build distribution operations in California and Nevada.
48North agreed to pay $2.10 million to acquire Quill. The purchase price consists USD$641,000 in cash and USD$1.46 million in common shares of 48North at a price of around $0.86 per common share.
The acquisition will allow 48North to begin operations in the U.S. market.
“48North recognizes the importance of entering the burgeoning U.S market. I believe that authentic brands and next-generation products distributed at scale, particularly in the emerging U.S. market, will be one of the major keys to success in the cannabis industry,” stated Alison Gordon, the co-CEO of 48North.
Quill’s Acquisition A ‘Critical Step’
Quill manufactures beautifully–designed vape products and specializes in the development of easy-to-use, controlled-dosage and health-focused disposable vape pens. The company distributes its unfinished branded vape delivery hardware to licensed cannabis processors who finish the products and distribute the finished products to licensed cannabis retailers.
Quill is not itself engaged in the cultivation, distribution or possession of cannabis in the U.S.
This year, in addition to Quill’s established products, the company is launching a full-spectrum, hemp based, CBD-specific, internationally distributed, all-in-one vaporizer pen. As a result, 48North-owned products will now have multi-state distribution and the ability to be licensed globally, where legally permitted.
“Without question, the Quill suite of products aligns closely with 48North’s growing portfolio of brands. This acquisition marks a critical step in the Company’s goal to become the trusted leader in the development, manufacturing and distribution of next-generation cannabis products and brands,” Gordon added.
48North intends to benefit from Quill’s expanding distribution network to accelerate the distribution of the company’s brand portfolio into the U.S. The company also plans to pursue opportunities to sell Quill products throughout its existing distribution network in Canada.
The acquisition is subject to approval from the TSX Venture Exchange and customary closing conditions.