Bhang Corporation, a wholly owned operating subsidiary of global cannabis CPG brand Bhang Inc., has reportedly entered into a termination agreement with CannaRoyalty Corp. d/b/a Origin House and its fully owned subsidiary Kaya Management, Inc.
This agreement dismisses the previously declared exclusive California license deal between Kaya and Bhang. Both parties have agreed to a mutual release of claims resulting from this agreement. Under the Moreover, following this move, Bhang will receive input materials, royalty payments, Bhang-branded finished goods, origin house shares, and manufacturing equipment, collectively valued at around USD 1.1 million.
For the record, Bhang has signed a contract with California’s leading cannabis co-packers Herban, Inc. and Trava, Inc. to produce Bhang-branded products in California. The company had also inked a contract with Shelf-Life Distributing to deliver these products across the region.
Moving from a licensing business model to a direct-to-retail model is expected to strengthen Bhang’s footprint throughout California. It would help the company to achieve operations-derived revenue rather than royalties.
Meanwhile, the company’s internal sales team is working with retailers for a smooth transition. Bhang’s multi-state cannabis platform comprises licensees in Nevada, New Mexico, Florida, Illinois, Ohio, and Michigan and a 50/50 joint-venture with Indiva Ltd. in Canada.
Bhang’s hemp-derived CBD products are available across the United States in brick & mortar stores and online through bhangcbd.com. These products are also available in Austria, Germany, Switzerland, Poland, the U.K., and Puerto Rico.
As announced in 2019, the company will relocate its headquarters to California, where Bhang was initially incepted in 2010. Over the past few years, Bhang has become one of the leading brands in cannabis with the company’s capital-light operating platform driven by top tier distribution and manufacturing partners.
Currently, Bhang is one of the leading global cannabis companies with a wide-ranging portfolio of more than 100 cannabis, hemp-derived CBD and terpene products including pre-rolls, gums, chocolates, and beverages through its fully owned Red Ace Organics division, among others.
Source Credit - https://www.einpresswire.com/article/506606286/bhang-and-origin-house-mutually-terminate-license-agreement