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IRVINE, CA / ACCESSWIRE / May 14, 2020 / ORCHID VENTURES, INC. (ORCD.CN)(OTC PINK:ORVRF) (the "Company" or "Orchid"), a multi-state cannabis innovation company is pleased to announce it has entered into a Licensing Agreement to license its Orchid Essentials brand in the state of Oregon. Included in the transaction, is the sale of an OLCC distribution license assigned to the Orchid Essentials' facility in Clackamas, Oregon and the rights to expand into Colorado and Oklahoma, under a separate agreement and at a later date. Licensee will do business as Orechid LLC, while ownership of the distribution license will transfer to Tine Trading Company, LLC. Both entities are led by Senior Management for a portfolio of multi-state, vertically integrated companies, with 10 years of experience in cultivation, manufacturing, and retail dispensaries. In addition, new leadership has over 30 years of sales, manufacturing, and supply chain experience in the Food Service and CPG industries.
Orechid LLC, will assume all operational and distribution responsibilities in Oregon during the next 45 days. Over the next several months Orchid will finalize a development plan to produce and launch Orchid Essential's products in additional states. The current Orchid Essentials' staff will assist new ownership during a transition period. Once completed, their roles and responsibilities will be reassigned to PurTec Delivery Systems and CELLg8® Sciences; two of Orchid Ventures' subsidiaries.
Terms of the Agreement:
Orechid LLC, combined with Tine Trading Company LLC, has agreed to pay Orchid $630,000 USD for the acquisition of Orchid's inventory and revenue in an Oregon facility, and the rights to expand into Colorado and Oklahoma, plus the opportunity to secure the rights to license Orchid Essentials in other domestic states. Orechid LLC, will pay Orchid a licensing fee on all Orchid Essentials brand sales over a 10-year term and as part of the licensing agreement, will purchase all vaporizer hardware and packaging through PurTec Delivery Systems, an Orchid Ventures subsidiary.
"This is a big step forward in shifting our business strategy for Orchid Essentials to a licensing model. The opportunity to partner with such a high quality operation allows us to establish our licensing terms and necessary infrastructure so that we can expand the Orchid brand platform into additional markets throughout North America.. Over three years ago when starting the company, our original intention was to build Orchid Essentials into an established household brand, and to expand that brand equity globally through licensing partnerships like this one with Orechid, LLC. Sean Davis and his team have been exceptionally professional and great to deal with. I feel this is going to be a great long-term partnership and a stepping stone to launching Orchid Essentials products with CELLg8® technology for rapid absorption under this licensing agreement." said Corey Mangold, Founder & CEO.
"Over the years our dispensary managers and leadership team have been big fans of the Orchid brand and admirers of its high-quality reputation throughout the State of Oregon", explained Sean Davis, CEO of Orechid, LLC. "We're both excited and honored to become part of the Orchid family and help grow its national footprint".
ABOUT ORCHID ESSENTIALS
Orchid Essentials is an Irvine, CA-based multi-state operator that launched in Oregon and California in August 2017 and has since developed a mass-market brand and loyal consumer following with its premium cannabis products and unique vape hardware delivery system. Since July 2019, Orchid has diversified its efforts and has brought to market innovative services and product offerings to support brands throughout the global cannabis industry. Orchid has diversified its portfolio to include PurTec Delivery Systems, a company that produces, markets and sells clean vaporizer hardware that has been emissions tested against the most stringent standards in the world set forth by the EU and has unrivaled product quality and value pricing. Orchid, through its wholly owned subsidiary, has launched a patented and clinically proven bioavailability solution to increase the absorption of THC and other cannabinoids making products much more effective and an activation time of less than five minutes. With a continued focus on brand and intellectual property development, Orchid will continue to create new and innovative products and technologies, then bring them to the global cannabis marketplace and set the gold standard for delivery systems whether it's vape or formulation sciences. Orchid's management brings significant branding, product development and distribution experience with a proven track record of scaling businesses and building sustainable revenue growth through value-generating partnerships and innovation that creates enterprise value. Learn more at https://orchidessentials.com/
ON BEHALF OF THE BOARD OF DIRECTORS - ORCHID VENTURES, INC.
|CEO and Director
The CSE does not accept responsibility for the adequacy or accuracy of this release.
Safe Harbor Statement
Except for historical information contained herein, statements in this release may be forward-looking and made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate", "believe", "estimate", "expect", "intend" and similar expressions, as they relate to Orchid Ventures, Inc. and Orchid Essentials any of its affiliates or subsidiaries (collectively, the "Company") or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in the Company's Canadian securities regulatory filings with sedar.com, Factors which could cause actual results to differ materially from these forward-looking statements include such factors as (i) the development and protection of our brands and other intellectual property, (ii) the need to raise capital to meet business requirements, (iii) significant fluctuations in marketing expenses, (iv) the ability to achieve and expand significant levels of revenues, or recognize net income, from the sale of our products and services, (v) the Company's ability to conduct the business if there are changes in laws, regulations, or government policies related to cannabis, (vi) management's ability to attract and maintain qualified personnel necessary for the development and commercialization of its planned products, and (vii) other information that may be detailed from time to time in the Company's Canadian securities regulatory filings with sedar.com. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: Orchid Ventures, Inc.
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