SOL Global Investments Corp (CSE:SOL.CN) (OTCMKTS:SOLCF) announced Thursday it had made a US$30 million investment in hemp company Blühen Botanicals LLC through its portfolio company, Heavenly Rx Ltd.
The Toronto-based SOL Global invests in cannabis and cannabis-related companies operating in legal US states as well as Europe.
According to SOL, Heavenly Rx will become Blühen’s exclusive supplier of bulk hemp-derived CBD distillates, as well as isolates and extracts, securing a source of product ingredients for Heavenly while insulating the company from volatile pricing in the hemp biomass wholesale markets.
"Since its founding, Blühen's focus on advanced genetics, extensive farming partnerships, and an innovative processing and extraction model has helped shaped it into the visionary market leader in the hemp industry it is today," said Brady Cobb, CEO of SOL Global in a statement. "This investment in Blühen will allow Heavenly Rx to control the quality and pricing of its CBD isolate, the most important ingredient that Heavenly Rx will utilize across all of its consumer product lines."
Tennessee-based Blühen will use the $30 million to bolster its research and engineering teams and focus on the development of new retail and ecommerce operations.
Shares of SOL Global fell 2.5%, or C$0.06, on Thursday to sit at C$2.32 by midday in Canada.
Contact Angela at [email protected]
Follow her on Twitter @AHarmantas