Strategic acquisition will drive substantial brand growth in Canada, begin U.S. presence, and significantly expand the company’s product portfolio
TORONTO, Oct. 12, 2021 /CNW/ – Socially-conscious cannabis brand house TREC Brands (“TREC”) today announces it has entered into a definitive agreement to acquire Agripharm Corp. (“Agripharm”), a licensed producer of consumer cannabis products with existing provincial supply agreements covering 75% of the Canadian market. The acquisition will support TREC in achieving significant market share growth and cement its leadership in the industry with a diversified product portfolio of over 50+ skus, including leading U.S. brands. Combining Agripharm’s production excellence with TREC’s commercialization preeminence will transform how consumers experience cannabis, building the consumer cannabis platform of the future.
The union of TREC and Agripham is expected to accelerate TREC’s position in a maturing industry that is poised for growth, further fueling the company’s momentum following two years of historical success with brands Thumbs Up Brand, Blissed and WINK. While both TREC and Agripharm have a robust product offering within flower, concentrates, vapes, and edibles, the acquisition will expand TREC’s product portfolio of both owned and licensed brands with innovative products that exploit unique market niches, as well as grow the company’s footprint through the expansion of Agripharm’s private label business. The completion of the acquisition will also secure TREC exclusive Canadian rights to award-winning U.S. consumer brands Bakked and O.pen and make TREC the exclusive Canadian distributor of Firefly Mini. By streamlining its supply chain, TREC will aim to achieve greater control over production, generate higher margins and increase revenue. The company will continue to build out its own brands, enhancing its consumer cannabis platform and accelerating its established growth trajectory.
“With proven success in supporting the release of innovative cannabis products to the delight of customers, we’re ready for our next phase of growth,” says Trang Trinh, CEO, TREC Brands. “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. Together, we’re a team of the world’s leading cannabis brand builders and industry-leading cultivators, processors and curators.”
With Agripharm as a production centre of excellence and supplier of 50+ existing listings to wholesale boards, TREC is well positioned to capitalize on growth opportunities and act as a vertical commercialization centre for emerging brands and products. Immediately following completion of the deal, TREC will focus on growing private label programs for key retailers, expanding their product portfolio of both owned and licensed brands, 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, Founder and CEO, Agripharm Corp. “In this market, it is vital that cannabis companies stand out with a strong product strategy that is aligned with consumer taste and demand. Based on the combined track record and our shared vision for the future, we are very optimistic about what the expanded TREC team will accomplish.”
Since its launch in May 2019, TREC has executed with excellence, delivering positive performance in a growing industry. TREC’s track record of organic growth in Canadian cannabis has been driven by unique product partnerships. With Agripharm as a manufacturing centre of excellence, TREC is ready to lead.
The transaction is expected to close as early as January, pending required regulatory approvals and other customary closing conditions.
To learn more about TREC Brands, visit www.trecbrands.com or @trecbrands on Instagram.
SOURCE TREC Brands Inc.
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