Subjects: NEW PRODUCTS/SERVICES, MISCELLANEOUS
High Hampton Signs LOI to Acquire California Extracts Manufacturer -- CFN Media
SEATTLE, Nov. 05, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE ? CFN Media Group ("CFN Media"), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article discussing High Hampton Holdings Corp. (CSE:HC) (HC.CN) (CNSX:HC) (FSE:0HCN) and how the company is poised to capitalize on the market through its 100 percent owned 10.8 acre CoachellaGro asset and a series of strategic acquisition to expand its product lines and distribution footprint.
The cannabis industry is projected to reach $75 billion by 2030, according to Cowen & Co., driven by the legalization of medical and recreational cannabis across a growing number of states. According to Arcview Market Research and BDS Analytics, a large portion of that growth will come from California's newly legalized recreational market, which the analysts project will reach $5.1 billion by 2022.
Building a Presence in California
High Hampton secured a Conditional Use Permit for its 254,000 sq. ft. CoachellaGro greenhouse facility during the second quarter and began construction soon after, under the guidance of the engineering firm, Infrastructure Engineers Inc., global greenhouse design firm ALPS Inc., and lead construction firm Vertical Construction.
Management's long-term plan is to leverage the CoachellaGro campus into the largest consolidator in the medical cannabis space. By providing finance, real estate, licensing, distribution, branding, and operational expertise to tenant growers, the company aims to build an integrated vertical supply chain that lowers the cost of goods sold and maximizes profits for both tenant growers and its own shareholders.
The company also acquired several key companies to add expertise:
- 8 Points Management / Bravo Distribution LLC: The largest distribution footprint in California with the most sought after medical cannabis products. With immediate access to major distribution hubs in West Sacramento, the company provides cannabis wholesale logistics, distribution, and transportation.
- Caligold Inc.: An award-winning edibles brand with seven multi-strain, award-winning chocolate bars in dispensaries across California. Last year, the company generated $2 million in top-line revenue as one of the state's leading brands.
The company anticipates that its 254,000 sq. ft.greenhouse facility and leasehold business model will be capable of producing 50,000 pounds of dried cannabis per year. At $1,000 per pound, these production levels could translate to $50 million per year in top-line revenue.
Mojave Jane Adds Extraction Expertise
High Hampton recently announced a binding letter of intent to acquire Mojave Jane LLC, a licensed manufacturer of premium cannabis extracts and concentrates in California. Located in Coachella near the company's existing facility, Mojave Jane is licensed for volatile and non-volatile manufacturing using state-of-the-art CO2 extraction technologies and proven distillation techniques to create products for both medical and recreational markets.
The acquisition will enable High Hampton to produce high-value white-label and branded extracts for distribution across the California market. The near-term revenue from these activities could fuel profitability and growth across the company's portfolio. In addition, the experienced management team and operators will augment High Hampton's existing team to help unlock significant long-term value for shareholders.
"The acquisition of Mojave Jane represents a cornerstone of our consolidation strategy in California in that it adds a proven cannabis manufacturer to our growing portfolio," said High Hampton's interim CEO, Christian Scovenna. "Even more important, this acquisition integrates perfectly with our other subsidiaries, and I expect pivotal synergies to develop such as supply chain agreements between Mojave Jane and Caligold, as well as, access to an established distribution network through 8 Points Management."
Looking Ahead
High Hampton Holdings Corp. (CSE:HC) (HC.CN) (CNSX:HC) (FSE:0HCN) represents a compelling opportunity to invest in California's $5+ billion cannabis industry. With its CoachellaGro project expected to come online next year, the acquisition of Mojave Jane could bring near-term revenue and long-term synergies to its growing portfolio of businesses. Investors may want to take a closer look at the stock as these developments unfold.
For more information, visit the company's website or download their investor presentation.
Please follow the link to read the full article: http://www.cannabisfn.com/high-hampton-signs-loi-acquire-california-extracts-manufacturer/
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The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/
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The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/
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