Turning Point Brands invests in Canadian distribution firm Recreation Marketing

24 July 2019

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.


NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Gowling WLG professionals will be pleased to discuss resolutions to specific legal concerns you may have.