A new cannabis product is set to offer adult-use consumers in Ontario an option to navigate the upcoming rush of brands available upon legalization.
Named the “Discovery Series Vol. 1,” this is the first iteration of the Cannabis Collections AHLOT, which will be sold starting on October 17.
The package will offer consumers five 1-gram strains from five Canadian licensed producers (LP). Four of these products are tied to public cannabis ventures.
Here’s a breakdown of the producers selected, the respective public plays for investors, the brands each represent and the product offered in the collection:
Organigram (TSXV:OGI) | Edison Cannabis | Rio Bravo (Wabanaki) | Sativa
Emblem (TSXV:EMC)| Symbl | Solar Power (Sour Kush) | Hybrid
Solace Health – TerrAscend (CSE:TER) | Haven St. | No. 405 (Blueberry Kush) | Indica
7ACRES – Supreme Cannabis Company (TSXV:FIRE) | 7ACRES | Sensi Star | Indica
Starseed Holdings | Saturday | Saturday Afternoon (CBD MediHaze) | CBD Dominant Sativa
Based on final design for the product, Greg Pantelic, CEO of AHLOT, told the Investing News Network (INN) AHLOT took cues from a novelty item in the beer industry.
According to Pantelic, after conducting some research with breweries, an overwhelming majority of consumers that try a flight of beer — which is a serving of different types of beer in small glasses — end up ordering a separate pint afterwards.
The executive hopes this collection of cannabis products will act similarly and offer consumers a jumping off point for what he described as a “tsunami” of options come legalization.
“Frankly, the experience will be quite poor of a customer experience for anyone purchasing cannabis in the new legal environment,” Pantelic said. “It’s going to be like throwing darts.”
With the Canadian market on its way towards legalization, brands awareness has developed as a key element for investors to recognize and compare among companies in the public market.
“Not only will it be difficult to distinguish between the hundreds of new brands on the market, but it will be immensely daunting for consumers of all experience levels to determine which strains are right for them,” the executive said.
AHLOT will attempt to expand the line of collections and search for new brands to add into later volumes.
Ray Gracewood, Organigram’s chief commercial officer, said this variety pack is an extension of the consumption and buying patterns noticed by the company for “cannabis enthusiasts.”
Entry of cannabis collection into Ontario market
AHLOT, which stands for A Higher Level Of Thought, holds a partnership with TerrAscend through an investment of C$2.5 million worth of convertible notes made by the CSE-listed company.
As part of TerrAscend’s supply agreement with the Ontario Cannabis Retail Corporation (OCRC), the AHLOT Cannabis Collections Discovery Pack will become available to consumers through online sales.
“Solace Health will provide fulfillment and distribution services of AHLOT branded products for Ontario consumers,” the company indicated in an announcement.
Robyn Rabinovich, TerrAscend’s VP of business development, said the company made this investment as a belief of the options for the cannabis space beyond cultivation businesses.
Pantelic told INN the company “made it very compelling from an economics perspective” for these producers to be involved in the product. It was only last week when all five producers discovered who else was part of the collection, according to the executive.
Pantelic said Solace Health, the subsidiary of TerrAscend, is licensed to purchase wholesale cannabis from different licensed producers and sell cannabis in Canada’s provinces, which includes AHLOT’s collections.
Organigram currently holds a “Strong Buy” rating on the analyst review aggregator site TipRanks, based on three separate recommendations.
A few of the public producers involved with the collection took hits in their shareprice on Wednesday following the announcement from AHLOT.
Organigram and Supreme both dipped 0.13 and 1.33 percent by the end of the trading session. On the other hand TerrAscend and Emblem rose 1.36 percent and 11.30 percent respectively.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Emblem and Supreme Cannabis Company are clients of the Investing News Network. This article is not paid-for content.
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