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Thursday, Oct 21, 2021
Mugglehead Magazine
Cannabis & psychedelics industry news based in Vancouver, B.C.
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TREC Brands set to buy Agripharm for undisclosed sum

The deal will give it control of a couple of US brands, as well as broad market coverage in Canada

Socially-conscious TREC set to acquire licensed producer Agripharm
TREC Brands donates 10 per cent of profits to the communities they operate in. Photo via TREC

Socially-conscious cannabis firm TREC Brands is set to acquire decades-old licensed producer Agripharm Corp., gaining a presence in the U.S. market and substantially growing its brands portfolio in the process.

On Tuesday, TREC said the agreement for an undisclosed sum will help it grow in Canada, and expand its portfolio to over 50 SKUs. According to a statement, Agripharm has provincial supply agreements covering 75 per cent of the Canadian market.

The agreement also secures exclusive Canadian rights to U.S. brands Bakked and O.pen, as well as making TREC the exclusive Canadian distributor of Firefly Mini, a disposable vape pen.

The deal is expected to finish in early January pending required regulatory approvals and closing conditions.

With the acquisition, TREC says it will increase revenue by streamlining its supply chain and tightening control over production.

TREC launched its first products two years ago, and carries brands Thumps Up, Blissed and WINK.

“We are continuously looking for ways to enhance our platform and combining forces with Agripharm, whom we partnered with for the release of our inaugural SKU WINK No.01, is the right strategic next step in delivering even more happiness and value to our customers,” TREC CEO Trang Trinh said in the statement.

“In this market, it is vital that cannabis companies stand out with a strong product strategy that is aligned with consumer taste and demand.”

Read more: Slang Worldwide expands into Canada, targets BC vape market

Read more: TREC brands delivers socially conscious pot, shortlisted for two Canadian Cannabis Awards

After the deal is finalized, TREC says it will focus on growing private label programs for key retailers to expand its portfolio licensed brands, while building distribution and increasing margins.

“The Canadian cannabis market is poised for continued growth, with projected sales expected to reach $6.4 billion by 2024—however, competition is fierce and new brands face high barriers to commercialization,” says Peter Miller, Agripharm CEO.

“In this market, it is vital that cannabis companies stand out with a strong product strategy that is aligned with consumer taste and demand.”

Agripharm was founded in 2013, and built some of Canada’s first licensed cannabis production and extraction facilities. The company is co-owned by SLANG Worldwide Inc. (CNSX: SLNG), Canopy Growth Corp. (TSX: WEED) and Green House Holdings North America Inc.

Toronto-based TREC donates 10 per cent of all profits back into the communities it operates in, and its name is an acronym for trust, respect, equality and compassion.

 

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