Active Health Foods has announced the brands in its letter of intent for a joint venture with Massachusetts-based cultivation, manufacturing, and retail company, Hub Craft.
The proposed joint venture will bring east coast brands in Hub Craft’s suite to the California cannabis market. The brands include Freeway Cannabis by Rick Ross, Payton’s Place by Gary Payton, TRUTH34 brand via Paul Pierce, and Whoopi Goldberg’s “Emma & Clyde” products.
Active Health Foods, Hub Craft, and licensed California operator Cannabis Global, Inc. are set to form a California corporation to enter the California marketplace. The proposed venture will grant exclusive licenses on all Hub Craft products, branding, and technologies for the state. Additionally, the new corporation will have the option to purchase a 51% controlling position in Hub Craft at any point in the first nine months of the effective date for $15 million.
The proposed move into the California market is still just a proposal. Company executives have agreed to the proposed initial terms, but a binding, definitive agreement has yet to be signed.
“With the competitiveness of the mature California markets, branding is proving to be a key competitive differentiator. We are looking forward to working with both Hub Craft and Cannabis Global to make these brands highly successful in the California market,” said Mr. Glen Bonilla, CEO of Active Health.