Toronto, Canada-based Newstrike Brands Ltd. (TSX: HIP) (OTCPK: NWKRF) has made public its strategic plan to invest US$5 million in Green Tank Technologies. Green Tank is a premier vape hardware and technology manufacturer in North America. The investment strengthens the relationship between Up Cannabis (a Newstrike Brands subsidiary) and Green Tank as both companies brace for the legalization of vaping for cannabis oil.
Further explaining the strategic investment, Newstrike Brands’ Chief Strategy Officer, Mark E. Burton said, “In anticipation of revised regulations coming into force in late 2019, we are gearing up for the commercial launch of our full line of cannabis vape products. 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.
“Our investment in Green Tank is an important component of our innovation strategy, giving us access to leading edge, cannabis-specific vape hardware, new products development and R&D. It complements perfectly the significant investments we are making in advanced extraction technology and cannabis oil production capacity.”
There are speculations that Newstrike Brands is Hexo Corp (OTCMKTS: HYYDF) acquisition target. Reacting to Newstrike’s investment, Green Tank Technologies CEO, Dustin Koffler said, “This cornerstone investment from Newstrike, along with the additional funds raised from our other strategic investors as part of our Series A financing, will allow Green Tank to execute on our growth plans across North America over the coming years. We are excited to be partnered with Newstrike and Up Cannabis and are proud to have their support as both a customer as well as investor, particularly as these products become legal for sale to consumers in Canada.”
While Newstrike Brands’ strategic investment in Green Tank Technologies is visionary, the success of their idea will depend to a large extent on the legalization of cannabis oil vaping. This may take longer than they are projecting.
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