ORHOF stock is moving higher this morning after Origin House (CSE:OH) (OTCQX:ORHOF) announced that it has entered into a distribution agreement with Kings Garden Inc.
Major Boost for the Company
It has been a tough year for companies in the cannabis space, and many of those companies have found it difficult to grow their businesses adequately amidst sinking stock prices. However, some companies have still managed to complete important deals, and one of those is Origin House. In a new development, the company announced that Continuum, its distribution division in California, has entered into a distribution agreement with Kings Garden Inc.
According to the terms of the said agreement, Continuum is going to be the exclusive distributor of all Kings Garden products in the state of California. Kings Garden is a boutique cannabis brand, which is based out of California.
It is a significant development for Origin House since Kings Garden is one of the best-known brands in California and gives the company a foothold in a highly lucrative cannabis market.
At the time of writing, ORHOF stock is trading up by 3% at $4.05.
>> Valens Stock Gains on Name Rebranding and New Agreements
The Chief Executive Officer of the company, Marc Lustig, spoke about the deal: “This agreement is aligned with our stated strategy to build and support category winners, solidifying Kings Garden within our house of brands." Continuum will be responsible for the distribution of Kings Garden products in California for a year initially.
ORHOF Stock is Up 47% This Month
ORHOF stock has been one of the better performers amongst cannabis stocks in December, and since the 4th of this month, it has gained as much as 47%. Earlier this year, Cresco Labs agreed to acquire Origin House in a highly lucrative deal worth $823 million, but then this got delayed due to liquidity issues with the former.
However, the deal is now back on track, and the new entity is all set to be one of the biggest cannabis operations in North America. It will have as many as 51 retail outlets and cultivation areas spread across as many as 11 states in the United States. The rally in ORHOF stock has hence not come as a surprise.
Featured image: DepositPhotos © AndreyPopov
