Newstrike Brands Ltd. (OTCMKTS:NWKRF), which owns Up Cannabis, said that it made a $5 million investment in Green Tank Technologies, a manufacturer of cannabis vape hardware and technology.
Newstrike said that the investment strengthens the existing partnership between its subsidiary Up Cannabis and Green Tank as both companies prepare for the legalization of cannabis oil vaping.
Newstrike Preparing to Launch Cannabis Vape Products
Mark Burton, the chief strategy officer of Newstrike Brands, said that they are gearing up for the commercial launch of our full line of cannabis vape products in anticipation of revised cannabis regulations coming into force in late 2019.
“Our strategic investment in Green Tank puts us in a strong position to become a preferred supplier of end-to-end vape solutions to the adult use recreational market,” Burton noted.
Further, Burton said that data from California, where the vaping of cannabis extracts has been legal for some time, reveal that “this form of cannabis consumption is growing at a high rate and already accounts for roughly 30% of consumption. Accordingly, we expect vape products to be a significant part of our overall revenue profile.”
Newstrike plans to work with Green Tank to design hardware that works with its cannabis extracts.
“Our investment in Green Tank is an important component of our innovation strategy, giving us access to leading edge, cannabis specific vape hardware, new product development and R&D. It complements perfectly the significant investments we are making in advanced extraction technology and cannabis oil production capacity,” Burton added.