Licensed producer Canada House Wellness Group announced on Thursday that it has entered into an agreement with retailer Weedbox to partner in the operation of the company’s first cannabis dispensary in Alberta, under their brand Somewhere Variety. The two companies will also be developing their own signature brand of cannabis products, ranging from topicals to edibles to dried flower.
“As a leading cannabis lifestyle company with experience in branding and retail, cannabis stores and premium cannabis products are the logical next step for us,” said Jeremy Potvin, CEO of Weedbox. “Together, we will create something unique in the recreational market.”
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The hope is to create a combination that marries Canada House’s cannabis production with Weedbox’s retail know-how. The first store in the agreement is an already approved site in Edmonton, Alberta and Canada House will become the exclusive supplier of cannabis to the store.
The coming store will add itself to the growing list of cannabis dispensaries in the province (136 at time of writing).
The deal will see Weedbox acquire 49% control of the dispensary in exchange for a three-year non-interest-bearing promissory note in the amount of $500,000.
Weedbox will also contribute $250,000 of marketing, product development, and customer relations expertise to help market the Edmonton location and the co-branded cannabis products.
“We’re extremely excited to be collaborating with Weedbox and its stellar team of industry veterans,” said Michael Orrbrooke, Canada House’s chief revenue officer, in a press release. “Their collective retail experience includes lululemon, Roots Canada, Tokyo Smoke, Paul Frank, and Last Gang Records.”
The agreement will extend to other locations as they open across Canada.