(A version of this story originally appeared at Hemp Industry Daily. It has been updated to include conditions surrounding the investment.)
A Kentucky tobacco company is investing $15 million in a Los Angeles marijuana vape company that plans to expand its footprint by building out a line of THC-free CBD products.
Turning Point Brands of Louisville said in a news release its investment in Dosist will be used to develop new THC-free products and a national CBD brand that hasn’t been announced.
In addition, Turning Point said it has an option to invest another $15 million at predetermined terms within the next 12 months.
Dosist currently sells THC products in 700 dispensaries in California, Colorado, Nevada and Canada. The partnership with Turning Point helps Dosist access another 180,000 retail locations in the United States.
Turning Point said its investment won’t be used for THC business lines in the U.S.
According to the news release, Turning Point’s investment targets Dosist’s THC-free and Canadian business units “and cannot be used in connection with or for any cannabis or cannabis-related operations in the United States” – unless marijuana is legalized in the U.S.
In fact, the deal gives Turning Point an option to invest in Dosist’s THC operations if they become legal under federal law as well as a seat on the company’s board of directors.
Turning Point trades on the New York Stock Exchange as TPB.