TORONTO, Jan. 6, 2020 /CNW/ - PRESS RELEASE - SLANG Worldwide Inc., a cannabis consumer packaged goods company with a portfolio of brands distributed in over 2,600 stores across the United States, has announced that it is expanding into the Ohio medical cannabis market by the entering into of a licensing agreement with Standard Wellness Company, LLC.
Pursuant to the licensing agreement, Standard Wellness has been granted an exclusive license to produce and distribute the SLANG product suite in Ohio, beginning with its O.penVAPE, Pressies, Bakked and District Edibles brands. SLANG will derive revenue for each branded product sold in the state, with sales expected to commence in 2020.
"We strive to create brand awareness early and establish relationships with consumers in attractive, new cannabis markets," said SLANG CEO Peter Miller. "Our discipline around capital efficiency makes partnerships like this very strategic in achieving our near and long-term goals for brand awareness, while giving our partners a competitive advantage and a running start in their markets."
Standard Wellness was Ohio's first vertically integrated licensed cannabis producer. Its cultivation and processing facility is located in Gibsonburg, Ohio, and it currently distributes products to every medical cannabis dispensary in the state.
"Our strategy is to partner with leading brands to bring the finest quality cannabis products to patients in Ohio and empower them to lead healthy and rewarding lives," said Standard Wellness CEO Jared Maloof. "Our agreement with SLANG will enable us to diversify our product portfolio with recognized brands and help fuel our continued growth."
Licensed medical cannabis sales commenced in Ohio in January 2019. By the end of November, nearly 75,000 patients had registered with the State Board of Pharmacy and total cumulative product sales had reached US$49 million, according to the Ohio Medical Control Program. The total market for medical cannabis sales in Ohio is expected to exceed US$500 million by 2022, according to estimates published by Cormark Securities in January 2019. Ohio is the seventh largest state in the U.S. with a population of 11.7 million.