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Tuesday, May 28, 2024

Resonate to Purchase Iron Summit

Resonate Blends Inc., a lifestyle cannabis holding company based in Calabasas, announced in September that its board approved a plan to complete the acquisition of Iron Summit Distribution.  

Iron Summit is the creator of the Kaneh Co. brand, which produces cannabis-infused edibles including cookies, truffles, chocolates, and brownies. The San Diego-based firm also makes and manufactures products for other brands in the baked cannabis and edible industry. Kaneh delivers products to more than 200 retailers in California.

Resonate Blends said that it expects the closing of the deal to occur in October. However, it noted that although board approval had gone through, there is no guarantee that the acquisition will be completed. Financial terms of the deal were not disclosed.

If the acquisition is approved, Resonate will have a line of products to back up its Koan Cordials, a liquid made from cannabis and botanical extracts.

“The acquisition also provides Resonate a state-of-the-art kitchen in Southern California to further innovate the Kaneh Co. family of products, enhance Koan product development, increase third-party manufacturing capabilities and promote the buildout of its planned ‘Innovation Center’ alongside industry leaders in the California cannabis market,” the company said in a statement.

Last year, Iron Summit brought in more than $3 million in revenue between its own brand and white-label manufacturing.

Resonate’s move to acquire Iron Summit comes about a month after Resonate issued a shareholder and corporate update that addressed challenges it was facing in the market. 

Hannah Madans Welk
Hannah Madans Welk
Hannah Madans Welk is a managing editor at the Los Angeles Business Journal and the San Fernando Valley Business Journal. She previously covered real estate for the Los Angeles Business Journal. She has done work with publications including The Orange County Register, The Real Deal and doityourself.com.

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