Deal gives CannaRoyalty exposure to one of Canada's fastest-growing cannabis firms.
California push comes as state mandates that retailers cease carrying non-compliant cannabis products – a move that's expected to benefit licensed firms such as CannaRoyalty.
As legalization nears, some local pot firms believe small-scale producers could parallel the branding successes of craft beer, while others worry regulations will smoke out the little guys.
Canopy closes $500M round, LiveWell to go public, CannaRoyalty plans to raise $30M
CannaRoyalty has been on an acquisition spree focused on cannabis producers in the California market
Earlier this week, CannaRoyalty closed $17.3M financing round.
CannaRoyalty, which finances and invests in marijuana companies, posted revenues of just over $3 million for the fiscal year ending Dec. 31.
“We are confident that (this) will position us as a leader in the world's largest regulated cannabis distribution system, in California.”
Opportunities in California market outstrip Canadian potential: CEO Marc Lustig
CannaRoyalty will provide 180 Smoke, a Toronto-based seller of vape products, with up to $2.5 million to expand its operations across the country.