You’d have to imagine Jimi would approve.
The company that holds the rights to iconic rock god Jimi Hendrix’s image has entered into an exclusive licensing agreement with Nutritional High (CSE:C.NHL, Stock Forum) to allow the Toronto-based edibles and extracts company “to manufacture and distribute marijuana and hemp oil-infused products including gummy bears, hard candies and health and energy drinkable products, and non-exclusive rights to manufacture and distribute certain apparel and accessories, in the United States and Canada.”
Purple Haze Properties LLC receives 3.3m shares of C.NHL for its part in the deal, and will receive a minimum royalty of $1m in cash or shares over the next five years.
“We look forward to building a leading presence in this rapidly-growing category, both as licensors and as shareholders,” said Andrew Pitsicalis, CEO of Purple Haze Properties, in a news release Monday.
The deal is not the first celebrity licensing arrangement in the medical marijuana space, but may be the most promising. Others including Willie Nelson, the Bob Marley estate, Tommy Chong and Snoop Lion have entered the market with various arrangements. Even Betheny Frankel, she of the infamous SkinnyGirl line of spirits, has announced she plans to develop a marijuana strain that doesn’t give you the munchies, while Melissa Etheridge is putting out a marijuana/wine concoction.
But a line of edibles around Hendrix? There’s no stretch involved there.
The company plans to release the products under their “Edibles Experience” banner, which will include a “Purple Haze” line of THC-based products and a “Stone Free” line of CBD-based, non-psychoactive health products.
“Jimi Hendrix is one of the most legendary rock guitarists of all time and this partnership should create instant brand recognition for our edible marijuana products by Jimi’s fans across North America,” said David Posner, CEO of Nutritional High in Monday’s release, adding, “Entering into brand partnerships with the world’s foremost marijuana-related artists is a core component of our strategy, and we are honored to become part of Jimi’s legacy.”
The market was surprisingly non-plussed about the news, with some investors on messageboards expressing surprise that the company halted on non-acquisition news, but being as some other companies have been formed around similar celebrity licensing deals, I consider this to be big news.
FULL DISCLOSURE: The author holds stock in the company that was purchased on the open market.