The new rules for legal recreational weed in Canada are now public, and many producers are expressing frustration at being limited to opening only one storefront. CannaRoyalty Corp. (OTC: CNNRF) , however, is looking to make lemons into lemonade. And they could become a market leader in the process. The company’s decision to buy vape shop chain 180 Smoke will put the company on its way to doing so.

The $25 million deal for CannaRoyalty to purchase 180 Smoke includes an additional $15 million target-completion bonus.

Buying more than vape shops

In interview with BNN Bloomberg, the company’s president Afzal Hasan said the acquisition will allow CannaRoyalty to grow their customer base. They will draw on 180 Smoke’s established customer base with the acquisition.

“When we took a look at the customer streams that were coming through the door in various businesses, 180 Smoke was appealing because they surveyed their customers and 80-per-cent-plus were cannabis users too. It’s a very interesting, captive market.” Afzal Hasan to BNN Bloomberg.

180 Smoke currently has 26 retail outlets in Canada including subsidiary business storefronts. The locations sell vaping and nicotine-related items. CannaRoyalty, however, sees making these inroads with retail outlets as an important marketing tool. Rules and regulations surrounding cannabis advertising in Canada are projected to be restrictive, making creativity key for marijuana marketing.