HYTN Innovations Inc. has entered into a partnership with A1 Cannabis Inc. in a move that will allow A1 to transition its complete cannabis product portfolio from Tilray Brands to HYTN.
A subsidiary of Iconic Brewing, A1 is the Toronto-based owner of Summit Cannabis Beverages. The “comprehensive collaboration” announced on February 17 involves both a manufacturing agreement and a consulting agreement with a three-year term.
In addition to allowing A1 to transition its portfolio from Tilray, A1 will offer sales management services, while HYTN will provide the facilities, licenses, and qualifications required for ongoing product development within its licensed infrastructure. The agreements were signed on Feb 5th, 2025.
As part of the collaboration, Cole Miller, CEO of A1 Cannabis, will oversee HYTN’s domestic product sales forecasting, product development, and sales management for its 5 and 10 mg Sparkling Beverages and 100 mg Nano Shots.
HYTN says it believes that this deal will allow the company to accelerate its consumer products under a cost-effective and scalable manufacturing framework. A1 reported Summit Beverage’s sales of over 600,000 units in 2022, with sales in over 300 retailers nationally.
In January, HYTN received a new set of import permits from the UK’s Home Office and corresponding export permits from Health Canada. These permits enable the fulfilment of international orders totalling over 400 kilograms of Good Manufacturing Practice (GMP) cannabis products, advancing HYTN’s global reach and operational capabilities.
Also in January, HYTN announced receipt of an initial purchase order under manufacturing and pricing agreements with SNDL Inc. Under the executed agreements, HYTN will utilize EU Good Manufacturing Practice (EU GMP) to process both bulk and finished cannabis products for SNDL.
For the year ended September 30, 2024, HYTN generated an operating loss of $2.7 million and a net loss and comprehensive loss of $6.6 million.
For the same period, the company reported $851,494 in revenue from cannabis sales and agent fees. The majority of that ($639,311) was from cannabis beverage sales, while $199,599 was from cannabis edibles sales, and just $8,717 was from cannabis flower sales.
On March 21, 2024, HYTN announced that it had been awarded Good Manufacturing Practice (GMP) certification by Australia’s Therapeutic Goods Administration for its Kelowna production facility. This certification allows HYTN to manufacture cannabis dried flower into bulk and finished GMP medical products.
HYTN has begun registering A1’s product portfolio and expects to secure initial purchase orders for Summit-branded products by Q2 2025.
The company notes that this agreement does not constitute a joint venture. Instead, HYTN will register, manufacture, collect revenues from, and sell A1 products under its own licenses and approvals, while A1 retains rights to the A1 and Summit brands, its product formulations, and all related intellectual property.
“Integrating A1 into HYTN is an important advancement in scaling our domestic business,” said Elliot McKerr, CEO of HYTN. “By combining the Summit brand and A1’s product lineup into our operations, we are aiming to enhance operational efficiency, unlock revenue opportunities, and leverage industry expertise to strengthen our product development and sales strategy.”
“This collaboration is expected to allow A1 to streamline its operations while benefiting from HYTN’s manufacturing capabilities,” added Cole Miller, CEO of A1 Cannabis. “I am looking forward to contributing my experience in sales and product strategy to HYTN’s innovative beverage and Nano Shot offerings, helping to broaden their footprint in the market while also growing the existing A1 and Summit portfolio that we’ve built over the years.”
Featured image via HYTN
