Orchid Ventures Inc. (OTCMKTS:ORVRF) has announced the signing of a License Agreement for licensing its Oregon-based Orchid Essential Brand.
Orchid Ventures to sell Orchid Essential s distribution license in Oregon
As part of the transaction, the company will sell the OLCC distribution license issued to the Orchid Essentials facility located in Clackamas, Oregon. It includes the sale of rights for expansion to Oklahoma and Colorado but under a different agreement at a later date. The company buying the license will conduct its business under Orchid LLC, but ownership will be under Tine Trading Company, LLC.
An experienced management team leads the companies for a portfolio of vertically integrated, multi-state companies boasting of more than 10 years in manufacturing, cultivation as well as in retail dispensaries. Most importantly, the new leadership brings more than 30 years in the supply chain, manufacturing, and sales experience in the CPG and Food Service industry.
Following the signing of the agreement, it is expected that Orechid LLC will assume distribution and operational responsibilities in the state of Oregon within 45 days. In the coming month, Orchid will complete a development plan for production and introduction of Orchid Essential products in other states.
Orchid to receive $630,000 for the acquisition of Orchid Essentials
Tine Trading Company will pay Orchid a sum of $630,000 to purchase Orchid’s revenue and inventory at an Oregon facility as well as expansion rights to Oklahoma and Colorado. The payment will also include the opportunity of securing license rights for Orchid Essentials on other states. Orchid will receive license fees on the Orchid Essential sales for a ten-year term from Orechid, which will also acquire all packaging and vaporizer hardware through PurTec Delivery as part of the licensing deal.
Orchid CEO Corey Mangold indicated that this is a massive move in changing the Orchid Essentials’ business strategy l to a licensing model. He added that the chance to partner with Tine will give the company a way of establishing its licensing terms and infrastructure to expand their brand platform.