MMJ Phytotech’s Canadian cannabis arm has bought a business called Dream Water which it plans to turn into a marijuana water line.

Dream Water now sells a “liquid sleep shot” and “sleep powder” marketed as “a proprietary blend of sleep ingredients widely known to promote effective sleep, among many other benefits”.

MJ’s Harvest One Cannabis subsidiary plans to introduce cannabidiol (CBD) or hemp product lines for sale in countries where hemp is legal but cannabis is more heavily regulated.

CBD is one of the active ingredients found in cannabis. It has well-researched medicinal benefits — but unlike another cannabinoid, tetrahydrocannabinol (THC), it doesn’t get you high.

The deal is worth $C34.5 million: $US12.5 million in cash and $C18.5 million in shares worth $C1 each.

Dream Water is making about $6 million in revenue from its current, non-CBD products.

MMJ (ASX:MMJ) was Australia’s first listed medical cannabis company but has since shifted into a new life as a cannabis investor.

The company’s shares opened up 1.3 per cent to 38c.