Grown Rogue International (GRIN.C) inked an agreement for a joint venture between its Michigan subsidiary, Golden Harvests, and Pure Extracts Technologies (PULL.C)
Pure Extracts is offering their Pure Pulls and Pure Chews, but GRIN is also getting concentrates and cartridges to complement their portfolio, as well as a 3.5 gram nitrogen-sealed flower jars, which is already one of most recognized brands in the state.
“We are excited to expand our product offering in Michigan to include new products that doubles our addressable market in a top-five cannabis state. We have consumers that actively seek out the processors who purchase our trim for their own products, so this joint venture will help fulfill the increasing demand for Grown Rogue’s high-quality products in the state of Michigan, increase the strong brand equity our team is building, and capture additional margin for the company,” said Obie Strickler, chief executive officer of Grown Rogue.
Pure Extracts is a plant-based extraction company operating out of British Columbia, Canada. They deal primarily in cannabis and hemp extractions, and produce a line of their own edible products as well as white label distillates. Grown Rogue is a vertically integrated, cannabis multi-state operator with a series of products including sun-grown and indoor premium flower, as well as nitrogen-sealed indoor and sun-grown prerolls and jars.
The joint venture will include the buildout of 2,600 square feet of space in the 80,000 square foot Bay City, Michigan facility. It will produce Grown Rogue’s branded concentrates, cartridges, edibles, tinctures and similar products under Pure Extracts’ brnad. It will also consider building dedicated greenhouse production to cut processing costs for house brands and expand on white-label options.
“We are excited to be teaming up with Grown Rogue, renowned cultivators who have already sold their cannabis products to over 100 dispensaries throughout Michigan, a state where cannabis sales reached a record $171-million in July of this year, up 56 per cent from a year ago/ Establishing Pure Extracts’ brands in the United States, the world’s largest and most important cannabis market, is an important milestone for our company,” said Ben Nikolaevsky, chief executive officer of Pure Extracts.
Grown Rogue shares are up half a penny, and trading at $0.19.