Emerald Health Therapeutics, Inc. (CSE: EMH) (OTCQX: EMHTF) is teaming up with a British Columbia-based cannabis beverage maker to co-launch sparkling weed drinks across Canada before the end of the year.
In a statement Wednesday, the firm said its agreement with HYTN Cannabis Inc. will leverage Emerald’s cannabis sales licence, sales team, infrastructure as well as its wholesale and retail distribution relationships to sell HYTN’s products.
In return, Emerald will get a “double-digit percentage fee on total gross sales revenue (less excise tax)” on HYTN’s products in Canada.
A purchase order has been secured in B.C., the firm said, and HYTN expects to launch this quarter.
The initial drink flavours are blood orange, lemongrass ginger, rosewater lemonade and watermelon mint, and will have 10 milligrams of THC per 355-millimetre can.
A 5-milligram option is planned for the Quebec market, though no timeline was provided.
“Partnering with Emerald allows us to rapidly reach a national audience which is looking for better tasting, better acting and better-formulated cannabis 2.0 products,” said Elliot McKerr, CEO of HYTN.
“Our singular objective is to be the market leader in cannabis beverages and are confident HYTN’s elevation technology combined with a taste profile and format consumers are familiar with will help drive continuing growth of this market segment.”
McKeer brings experience from the beverage industry. He’s the founder of Electric Bicycle Brewing in Vancouver and has worked with Molson Coors Canada.
Another familiar face on the HYTN team is co-founder and COO Jason Broome, who cofounded The Flowr Corporation (TSXV: FLWR) and worked there as senior VP of operations and chief research and innovation officer.
“The HYTN team’s expertise and focused effort has resulted in a beverage product line that taps into multiple consumer trends and leverages proprietary technology,” said Riaz Bandali, Emerald president and CEO.
“We believe this cannabis beverage product line is well-positioned for success and fits well with Emerald’s focus on science-driven product innovation. We look forward to seeing HYTN products on store shelves before year-end.”
Company stock dropped nearly 10 per cent to $0.095 on Wednesday.
Last week, Emerald provided an update on its deal with FlowerPod LLC and its “cannabis vaporizer puck,” along with plans to enter the U.S. market. The vaporizer will launch in Massachusetts in December, and expand into more states next year.
Emerald's strategic licensee, FlowerPod, unveils groundbreaking dose-controlled cannabis vaping product, new brand (@gethuue), and U.S. launch plans with Grenco Sciences, a leader in cannabis vaporizer technology and creator of the @gpen.
— Emerald Health Therapeutics (@emeraldhealthca) October 28, 2021