Turning Point Brands, Inc. (NYSE: TPB) completed an $8 million strategic investment in cannabis lifestyle brand Old Pal Holding Company LLC. TPB invested in the form of a convertible note which includes additional follow-on investment rights.
“Turning Point has a proven track record of developing and growing brands and is capitalizing on this experience to identify highly recognizable, leading cannabis brands poised to experience significant growth,” said Larry Wexler, CEO, Turning Point Brands. “Given Old Pal’s favorable market position, the awareness of its products outside its current geographies and its unique licensing model, we are confident the brand is well-positioned to further penetrate the market and capitalize on the growth potential of the cannabis industry.”
Old Pal was founded by Rusty Wilenkin and Jason Osni in 2018 and capitalizes on the idea of shareable cannabis. They have trademarked the term”Share the Stoke” and say “Burn one down, pass it around.” The company sells pre-rolls and vapes. TPB is known for selling ZigZag rolling papers and other smoking accessories.
TPB’s investment will help Old Pal to expand its product offerings in existing states, which include California, Nevada, Michigan, Oklahoma, Ohio, Washington and Massachusetts, and will help create the infrastructure necessary to support continued territory and product expansion. As a result of Old Pal’s strong brand recognition and extensive network of licensed cultivation and production relationships, the company has the ability to scale its geographic footprint while continuing to offer consistent and readily available products.
“Old Pal’s mission is to spread the shareable cannabis lifestyle to customers across the U.S. through accessible and high-quality products,” added Charlie Cangialosi, COO, Old Pal. “Turning Point Brands’ experience with iconic brands, like Zig-Zag, and success in adjacent and complementary industries will allow us to bring the Old Pal experience to a wider range of markets and consumers.”