Hempacco, a vertically integrated hemp manufacturing company, began selling Cheech & Chong branded hemp smoking products in the third quarter of 2022 as part of its joint venture 50/50 previously announced. In January 2022, Hempacco entered into a joint venture agreement with Cheech and Chong’s Cannabis Company (CCCC). Hempacco launched its first line of Cheech & Chong-branded hemp smoking products and hemp packaging, as well as a Cheech & Chong-branded kiosk vending machine, with Tommy Chong, at the Tobacco Plus Expo in Las Vegas in January. Of course, Hempacco Co., Inc. (NASDAQ:HPCO) isn’t the only company providing new products to the market. The Hempshire Group (TSXV:HMPG) (OTC:HMPSF), MariMed, Inc (CSE:MRMD) (OTCQX:MRMD), MedMen Enterprises Inc. (CSE:MMEN) (OTCQX:MMNFF), and Tilray Brands Inc (TSX:TLRY) (NASDAQ:TLRY) are also expanding their product lines.
The Hempshire Group (TSXV:HMPG) (OTC:HMPSF) is a California-based smokable alternatives company formulating and selling its own proprietary brand of organic hemp smokes under the MOUNTAIN Smokes brand name. Hempshire also provides private white-labelling services and contract manufacturing services through its partners for significant non-owned Hemp Smoke brands in the United States and internationally.
On October 4, Hempshire announced the execution of strategic partnership agreements with Amit Khubani and Tom Patterson. Khubani is part of the family who founded Telebrands, the “As Seen On TV” marketing empire, ONTEL Products Corp, and Idea Village. He serves as the Executive VP of ONTEL, overseeing product sales generation of over $500 million annually; Patterson is recognized as one of the leading growth marketing and digital marketing strategists in ecommerce. Patterson’s in-house owned brands have generated over US$100 million in consumer and B2B sales, and he has been responsible for over US$450 million in product sales for clients of his marketing agency, WKND Digital.
The partnership agreements are performance-based and designed to incentivize Khubani and Patterson to drive $10 million in B2B product sales for The Hempshire Group over the next twelve months in exchange for equity in the company.
“We are ecstatic to have attracted two high-caliber individuals to Hempshire’s U.S. B2B sales efforts, and even more excited that these individuals have requested a highly incentivized performance and equity based compensation structure,” said Martin Marion, Hempshire President and CEO. “After trying MOUNTAIN® Smokes within their circles and conducting their due diligence, Amit and Tom’s request for a performance and equity-based compensation package shows their belief in the upside potential of Hempshire.”
Last month, Hempshire Group expanded its international reach after signing a contractual US$1.25 million purchase deal for MOUNTAIN® Smokes destined for Europe and the European Union with European exclusive master distributor Montagnaria Group AG (EU).
The purchase agreement follows Hempshire‘s recent clearance to sell MOUNTAIN® Smokes in Belgium, allowing access to the entire EU through member state reciprocity, as previously disclosed in a press release dated September 7, 2022.
Montagnaria’s binding promise to purchase a minimum of US$1.25 million of MOUNTAIN® Smokes throughout the twelve months from September 2022 to August 2023 is included in the Purchase Agreement. All purchase orders issued under the Purchase Agreement require payment of 50% of the total purchase order upon issuing and payment of the remainder before Hempshire shipping the order.
The Purchase Agreement was signed in order to ensure an orderly and effective roll-out of MOUNTAIN® Smokes throughout Europe and the EU. Hempshire is collaborating closely with Montagnaria to ensure that the MOUNTAIN® Smokes product complies with the specific ‘local’ standards of individual member states, such as packaging in the local language and the inclusion of any locally mandated warning labels.
“Penetrating the US$261 billion tobacco products market in Europe is one of our top priorities.” said Hempshire President and CEO Martin Marion. “Montagnaria’s binding financial commitment to MOUNTAIN® Smokes highlights their excitement and belief in the product, and their expectations of a successful European roll-out strategy. We intend on dedicating significant resources alongside Montagnaria to help facilitate brand awareness, consumer demand, and sales in each European country where we introduce MOUNTAIN® Smokes.”
On September 7, Hempshire announced that MOUNTAIN® Smokes have been found to comply with European Union Common Entry Gate (EU-CEG) regulations, including regulations governing tobacco and smokable products and the relevant regulations setting maximum THC levels at less than 0.2%, according to the Federal Public Health Food Safety and Environment Service of Belgium, an EU member nation. The notification authorizes MOUNTAIN® Smokes to be legally imported into the country and commercially sold there.
For more information about The Hempshire Group (TSXV:HMPG) (OTC:HMPSF), click here.
Companies Expanding Their Reach in the Market
Hemp smokables company Hempacco Co., Inc. (NASDAQ:HPCO) has continued expanding its reach in the market. Last month, the company announced the official release of Hemp Hop Smokables on www.HempHop.shop with its joint venture partners, hip hop mogul Rick Ross and Rap Snacks founder and CEO James Lindsay presenting the Hemp Hop Smokable products at the Boss Up Conference, September 17-19, 2022.
MariMed, Inc (CSE:MRMD) (OTCQX:MRMD) signed a partnership with 42 Degrees, a Michigan-licensed cannabis producer and distributor, to manufacture and market MariMed’s award-winning brands and products throughout the state. 42 Degrees now wholesales products to 340 dispensaries, accounting for nearly 75% of Michigan’s operational dispensaries. The licencing agreement aligns with MariMed‘s strategic expansion plan to market its brands in legal cannabis jurisdictions across the country. According to the company, Betty’s Eddies is expected to be available in Michigan retail markets in early 2023.
Premier cannabis retailer MedMen Enterprises Inc. (CSE:MMEN) (OTCQX:MMNFF) is continuing with its restructuring efforts. In August, the company completed a $67 million transaction with the Florida-based private firm Green Sentry Holdings LLC for the MedMen‘s Florida-based activities, which include its licence, dispensaries, inventory, and growing operations. Green Sentry will assume around $4 million in liabilities in exchange for $63 million in cash. The agreement also includes a licence to use MedMen‘s trademarks in the state. The company also revealed that it is investigating strategic options for New York, where it maintains a growing plant and four dispensaries under the state’s existing medical program. The upcoming recreational sales rollout in New York will benefit MedMen’s operating footprint.
Last month, leading global cannabis and consumer packaged goods company Tilray Brands Inc (TSX:TLRY) (NASDAQ:TLRY) announced the launch of Drumsticks, a new premium, infused pre-roll with amplified THC potency and fruit-forward aromas, under its Canadian cannabis brand, RIFF. RIFF Drumsticks are manufactured with Granddaddy Purp entire flower, which has grape and berry fragrances. They are rolled in unbleached paper, dipped in sticky distillate, then covered in a bed of kief to deliver the ultimate heightened RIFF experience. Last month, Tilray Medical, the company’s medical cannabis subsidiary, unveiled new medical cannabis products under the Tilray and Aphria brands and CannaPoints, a new program meant to help patients navigate their medical cannabis journey. Recognizing that each patient’s demands differ, Tilray Medical’s most recent release of high-quality medical cannabis products from distinct manufacturers provides a wide spectrum of THC and CBD products.
Meanwhile, The Hempshire Group (TSXV:HMPG) (OTC:HMPSF) also offers private white-labeling services and contract manufacturing services, through its partners, for non-owned Hemp Smoke brands in the United States and internationally.
Featured Image MegaPixl @ Anankkml
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