Under the three-year agreement, 1933 Industries will purchase Orchid's PurTec hardware and packaging component products and proprietary terpene blends for the production of Orchid Essentials products
1933 Industries Inc () () said Tuesday it is partnering with Orchid Ventures Inc (CSE: ORCD) (OTCMKTS:ORVRF) to manufacture and distribute Orchid products in the Nevada cannabis market.
The supply and licensing agreement was struck between Washington-based Orchid Ventures’ subsidiary Orchid Brands, LLC and 1933 Industries’ subsidiary Alternative Medicine Association LLC.
Both companies will leverage AMA's extraction expertise and well-established sales and distribution channels in the state, 1933 Industries said.
READ: 1933 Industries to sell its Canna Hemp line of wellness products in CBD Plus stores in US
Under the three-year agreement, 1933 Industries said it will purchase Orchid's PurTec hardware and packaging component products and proprietary terpene blends required for the production of Orchid Essentials products.
AMA will act as the exclusive supplier of the Orchid Essentials Brand Products and future lines, and will also purchase the same hardware components, packaging, and terpenes for its own branded products.
PurTec's Orchid cartridges are one of the only cartridges for cannabis oil that are emissions tested at AFNOR standards, the strictest guidelines set by the EU. Orchid's unique cannabis products and proven intellectual property will complement 1933 Industries’ portfolio of trusted brands.
"Bringing the Orchid Essentials brand and PurTec hardware to Nevada as its exclusive carrier is a significant strategic alliance for the company,” said Eugene Ruiz, president of 1933 Industries in a statement.
"This is a unique opportunity to partner with a company that enables us to expand our offerings with complimentary products, enhance our own delivery systems, improve our terpene profiles and support our sustainability mandate. PurTec's eco-friendly, plastic-free, wind energy manufactured, child-resistant retail packaging cartons and high emissions standards provide sustainable product innovation that will differentiate our products with increased consumer appeal."
Southern California presence
Rick Brown, president of Orchid Ventures, said Nevada cannabis consumers are familiar with its products currently being sold in Southern California.
"We feel that Orchid is highly differentiated from the existing vape products available in Nevada and that the traveling consumer in this market will help further spread brand awareness of Orchid Essentials,” Brown said.
“1933 Industries has been a market leader in Nevada for many years and they have built an extensive retail distribution network through their strong marketing and sales capability. Their focus on quality and innovation coupled with their proven track record as a licensee of other brands, makes 1933 Industries the perfect partner for Orchid in Nevada, as we continue to expand the brand nation-wide".
The launch program will focus on the Orchid Classic 0.5 gram high-quality vape product line, with associated packaging consistent with all Nevada Cannabis Compliance Board regulations, an optimal selection of terpene profiles, and the Orchid 650 mAh batteries. Orchid's extensive all-natural terpene line meets a minimum of 97% purity and are third-party tested and ISO-certified. The products will be available in select dispensaries by December 2020.
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