LOUISVILLE, Ky.–(BUSINESS WIRE)–Turning Point Brands, Inc. (“TPB”) (NYSE: TPB), a producer, marketer and distributor of branded shopper merchandise with energetic elements, in the present day introduced a $15 million strategic funding in main world cannabinoid firm dosist™ and an unique co-development and distribution settlement of a brand new nationwide CBD model, created in partnership with dosist’s thc-free enterprise unit. Additionally, TPB has an possibility to take a position one other $15 million at pre-determined phrases inside the subsequent 12 months.
“The cannabis market is exploding and now is the opportune time to invest in the space and significantly expand our addressable market,” stated Larry Wexler, CEO of Turning Point Brands. “With its leadership in results-oriented plant-based formulas and dose control technology, global recognition, consumer trust and scalability, dosist was the clear choice to be our new partner in this critical growth market. We couldn’t be more pleased to enter into this agreement with dosist, to not only help fuel its exciting new business and co-create a completely new CBD brand for our retail partners, but also to leverage their expertise as a marketing powerhouse to help build the future of both our companies.”
“We are extremely proud to partner with Turning Point Brands on our next phase of growth and distribution as we continue to transcend the way consumers think about their health and wellness,” stated Gunner Winston, CEO of dosist. “Turning Point’s leadership team has demonstrated remarkable foresight and vision about the future and opportunity for federally legal cannabinoid products. The synergy between our brands around this scope and mission is incredible and we are excited by what we will achieve together with this partnership.”
Since its launch in 2016, dosist has rapidly established itself as a pre-eminent and globally acknowledged hashish model by means of its award-winning improvements (Time Magazine, Fast Company, Bloomberg), and superior advertising and marketing prowess. The famend dosist product portfolio, together with its internationally patented dose-control inhalation know-how, delivers scientifically engineered formulations focusing on key human want states. dosist formulation provide customers an entire vary of options, beginning with its core line that includes balanced ratios of cbd to thc, and their thc-plus line, a group of excessive efficiency formulation designed for focused thc-forward experiences.
All dosist formulation are delivered by way of their proprietary dose-controlled units, which embody their fully re-engineered inhalable disposable dose pen™, the newly launched dose pen™ rechargeable system and the dose dial™, which dispenses a 3.7 mg sublingual pill. In the approaching 3-6 months, dosist plans to develop on its present platform with a considerable innovation pipeline together with tinctures, gummies and dynamic stay resin and full spectrum formulation developed in collaboration with a few of the most progressive manufacturers within the house.
dosist’s main hashish merchandise are at present obtainable in California, Colorado, Nevada and Canada, serving a complete dispensary community of greater than 700 shops. The firm has plans to launch into key new markets within the coming months, including geographies as they proceed their North American enlargement. dosist has constantly elevated the retail expertise throughout all markets which they at present service, together with a transformative retail retailer on iconic Abbot Kinney Blvd. in Venice, CA, and a flagship shop-in-shop in Planet 13 in Las Vegas, the most important hashish retail vacation spot on the planet, along with different quite a few and impactful retail experiences throughout their distribution channels.
In addition to their strong portfolio of present and upcoming thc-regulated merchandise, dosist plans to launch a globally scaled omni-channel platform in November, dosist thc-free™, bringing the model’s main requirements of precision, high quality and focused efficiency to the quickly rising CBD market throughout a number of product strains. The partnership between TPB and dosist additionally consists of the co-creation of a totally new nationwide CBD model aimed on the mass market. This partnership combines Turning Point Brands’ best-in-class gross sales and operations infrastructure with dosist’s experience in product innovation, advertising and marketing and model improvement. The new model will likely be solely distributed by TPB, which companies greater than 180,000 factors of sale within the United States.
dosist thc-free merchandise will likely be obtainable nationally throughout the US beginning early November at www.dosistthcfree.com and choose retailers. For extra details about dosist thc-free and its merchandise observe them on Instagram @dosistthcfree.
The proceeds of TPB’s funding are being utilized by dosist’s thc-free and Canadian enterprise models and can’t be utilized in reference to or for any hashish or cannabis-related operations within the United States, except and till such operations adjust to all relevant legal guidelines of the United States. TPB has been issued a warrant to obtain most well-liked shares of dosist that may routinely be exercised upon a change in federal legal guidelines within the United States to reschedule or deschedule hashish and/or allow its normal cultivation, distribution and possession. As a part of this settlement, TPB may also have an choice to fill a seat on the board of administrators of dosist upon legalization.
About Turning Point Brands, Inc.
Turning Point Brands (NYSE: TPB) is a producer, marketer and distributor of branded shopper merchandise with energetic elements by means of its iconic core manufacturers Zig-Zag® and Stoker’s®, and its rising manufacturers inside the NewGen section. TPB’s merchandise can be found in additional than 210,000 shops in North America along with websites reminiscent of www.zigzag.com, www.nu-x.com and www.solacevapor.com. For the newest information and details about TPB and its manufacturers, please go to www.turningpointbrands.com.
dosist™, primarily based in Los Angeles, California, launched in 2016 and has since grow to be often called a disruptor within the well being and wellness trade. dosist was named one in all Time Magazine’s Best Inventions of 2016, was acknowledged by Fast Company as one in all 2018’s Top 10 Most Innovative Companies within the well being sector, and was designated by LinkedIn because the quantity two Top Startups 2019: Hottest U.S. Companies To Work For Now. dosist’s new thc-free enterprise is scheduled to launch in early November, offering pure choices for a few of our commonest illnesses by means of dose-controlled focused cbd+ formulations reminiscent of calm thc-free™, sleep thc-free™ and reduction thc-free™. For extra details about dosist thc-free™ and its merchandise go to the web site at dosistthcfree.com and observe them on Instagram @dosistthcfree.
This press launch accommodates forward-looking statements inside the which means of the federal securities legal guidelines. Forward-looking statements could typically be recognized by means of phrases reminiscent of “anticipate,” “believe,” “expect,” “intend,” “plan” and “will” or, in every case, their detrimental, or different variations or comparable terminology. These forward-looking statements embody all issues that aren’t historic info. By their nature, forward-looking statements contain dangers and uncertainties as a result of they relate to occasions and rely on circumstances that will or could not happen sooner or later. As a outcome, precise occasions could differ materially from these expressed in or prompt by the forward-looking statements. Any forward-looking assertion made by TPB on this press launch speaks solely as of the date hereof. New dangers and uncertainties come up on occasion, and it’s inconceivable for TPB to foretell these occasions or how they could have an effect on it. TPB has no obligation, and doesn’t intend, to replace any forward-looking statements after the date hereof, besides as required by federal securities legal guidelines. Factors that might trigger these variations embody, however usually are not restricted to:
- declining gross sales of tobacco merchandise, and anticipated persevering with decline of gross sales, within the tobacco trade total;
- our dependence on a small variety of third-party suppliers and producers;
- the likelihood that we are going to be unable to establish or contract with new suppliers or producers within the occasion of a provide or product disruption;
- the likelihood that our licenses to make use of sure manufacturers or logos will likely be terminated, challenged or restricted;
- failure to keep up shopper model recognition and loyalty of our clients;
- our reliance on relationships with a number of massive retailers and nationwide chains for distribution of our merchandise;
- uncertainty and continued evolution of markets containing our NewGen merchandise;
- intense competitors and our skill to compete successfully;
- competitors from illicit sources;
- regulation of our merchandise by the FDA, which has broad regulatory powers;
- our merchandise are topic to growing and unpredictable regulation, for instance, present courtroom motion transferring ahead sure substantial Pre Market Tobacco Application obligations;
- uncertainty associated to the regulation and taxation of our NewGen merchandise;
- doable vital will increase in federal, state and native municipal tobacco- and vapor-related taxes;
- sensitivity of end-customers to elevated gross sales taxes and financial circumstances;
- substantial and growing U.S. regulation;
- doable growing worldwide management and regulation;
- failure to adjust to sure laws;
- imposition of great tariffs on imports into the U.S.;
- the scientific group’s lack of know-how relating to the long-term well being results of sure substances contained in a few of our merchandise;
- a few of our merchandise include nicotine which is taken into account to be a extremely addictive substance;
- contamination of our tobacco provide or merchandise;
- requirement to keep up compliance with grasp settlement settlement escrow account;
- our quantity of indebtedness;
- the phrases of our credit score services, which can prohibit our present and future operations;
- vital product legal responsibility litigation;
- lowered disclosure necessities relevant to rising development firms could make our widespread inventory much less engaging to traders, probably reducing our inventory value;
- failure to keep up our standing as an rising development firm earlier than the five-year most time interval an organization could retain such standing;
- our principal stockholders will be capable to exert vital affect over issues submitted to our stockholders and could take sure actions to stop takeovers;
- our certificates of incorporation and bylaws, in addition to Delaware regulation and sure laws, might discourage or prohibit acquisition bids or merger proposals, which can adversely have an effect on the market value of our widespread inventory;
- our certificates of incorporation limits the possession of our widespread inventory by people and entities which can be Restricted Investors. These restrictions could have an effect on the liquidity of our widespread inventory and could end in Restricted Investors being required to promote or redeem their shares at a loss or relinquish their voting, dividend and distribution rights;
- our enterprise could also be broken by occasions outdoors of our suppliers’ management, such because the influence of epidemics (e.g., coronavirus), political upheavals, or pure disasters;
- our reliance on info know-how;
- safety and privateness breaches;
- infringement on our mental property;
- third-party claims that we infringe on their mental property;
- failure to handle our development;
- failure to efficiently combine our acquisitions or in any other case be unable to learn from pursuing acquisitions;
- fluctuations in our outcomes;
- change price fluctuations;
- hostile U.S. and world financial circumstances;
- departure of key administration personnel or our incapacity to draw and retain expertise;
- future gross sales of our widespread inventory within the public market might scale back our inventory value, and any further capital raised by us by means of the sale of fairness or convertible securities could dilute your possession in us; and
- we could challenge most well-liked inventory whose phrases might adversely have an effect on the voting energy or worth of our widespread inventory.