A Kentucky tobacco company is deploying $15 million to 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 says its investment in dosist will be used to develop new THC-free products and a new national CBD brand that hasn’t been announced.
Dosist currently sells THC products in 700 dispensaries in California, Colorado, Nevada and Canada. The partnership with Turning Point helps it access another 180,000 retail locations nationwide.
Turning Point says its investment won’t be used for THC business lines in the United States. But 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 dosist’s board of directors.
Turning Point Brands’ investment goes toward 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 until it is legalized.
Turning Point trades on the New York Stock Exchange as TPB.