On July 24, 2019, Turning Point Brands, Inc. (NYSE: TPB) invested an initial US$1 million, raising to an aggregate total of $3 million upon reaching certain targets, for a 30% stake in 10233625 Canada Corp. (d/b/a Recreation Marketing, “ReCreation”), a Canadian distribution entity.
Turning Point Brands is a Kentucky-based industry leading marketer of Other Tobacco Products (OTP) and adult consumer alternatives. ReCreation is a specialty marketing and distribution firm focused on building brands in the Canadian smoking, vaping and alternative products categories.
TPB will use the ReCreation platform to launch RipTide®, TPB’s proprietary, groundbreaking non-tobacco e-liquid vape technology, into the Canadian market as well as a wide variety of Nu-X Ventures LLC products including a portfolio of CBD products as regulations permit.
In connection with its investment, TPB will also receive options to increase its stake in ReCreation to a 50% ownership position and will receive customary rights to designate members to ReCreation’s board of directors. TPB will make the investment in Recreation through its newly-created subsidiary, Turning Point Brands (Canada) Inc.
Gowling WLG advised ReCreation with respect to this investment with a team led by Marcus Hinkley.
Read the original article on GowlingWLG.com.
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