Two large cannabis companies said today they are investing in developing their own lines of hemp-derived products by opening subsidiary companies.
Chicago-based Cresco Labs, a vertically integrated, multistate cannabis operator, is opening Well Beings to offer a full line of hemp-derived products eligible for national distribution, as well as CBD versions of house-branded products including Cresco, Remedi and Mindy’s Edibles.
The hemp-based wellness products will help Cresco Labs reach a new customer base outside the licensed dispensary channel, the company said.
The subsidiary will be led by chief experience officer, Scott Wilson.
“The cross-channel, consumer-centric opportunity for Cresco to build brand equity is transformative in the cannabis industry,” Wilson said in a news release.
Cresco Labs will make a nonmaterial investment in the new subsidiary.
Meanwhile, SOL Global Investments Corp. is forming Heavenly Rx Ltd., an international hemp subsidiary focused on cultivation, processing and manufacturing a diverse range of CBD products including oils, tinctures, balms and vape-ready products, according to Green Market Report.
The Toronto-based cannabis firm plans to obtain a controlling interest in various assets through Heavenly Rx, including Knoxville, Tennessee-based Bluhen Botanicals LLC, which will receive a $30.6 million investment from Heavenly Rx.
Bluhen, a hemp biomass processing and extraction company that aims to develop farming and distribution partnerships across the southeastern U.S., will use the money to expand its research and engineering teams and develop and expand its retail operations in Tennessee and Florida.
“Heavenly Rx directly supports SOL Global’s continued hemp and CBD strategy in the U.S. and international markets and will serve as a critical launch pad for our hemp-related investment initiatives as hemp and related cannabinoid regulations continue to become more liberalized around the world,” said Brady Cobb, CEO of SOL Global.