High Hampton Secures Distribution in California -- CFN Media

SEATTLE, May 29, 2018 (GLOBE NEWSWIRE) -- CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, today announced publication of an article covering High Hampton Holdings Corp. (CSE: HC) (HC.CN) (CNSX: HC), an investment company focused on opportunities in California. The company recently signed a binding term sheet with a leading distributor in California to help address these challenges and provide investors with exposure to this key area.

California’s cannabis industry is projected to exceed $5 billion in size next year, creating a significant opportunity for investors. While most people are familiar with cultivators, dispensaries, and growtech providers, distribution is an often underappreciated part of the cannabis space. These companies provide marketing and logistical services to connect the various parties involved in delivering products to consumers.

California’s Growing Market

California just started selling adult-use cannabis at the beginning of the year and analysts already expect billions in revenue. The state’s cannabis sales could hit $3.7 billion by the end of this year and reach $5.1 billion next year as more dispensaries come online, according to BDS Analytics. By comparison, the state’s beer revenues totaled just $5 billion in 2017, according to IBIS World, which demonstrates the scale of the legal cannabis opportunity.

As the fifth largest economy in the world with a population of nearly 40 million, California has become the single largest cannabis market in the world. BDS Analytics notes that ex-California cannabis revenue topped $9.7 billion in the United States and Canada last year, but that figure is expected to rise to $24.5 billion by 2021 with the inclusion of California. These figures translate to a very attractive opportunity for companies and their shareholders.

The state also has strong support from lawmakers. For example, California Treasurer John Chiang - who is also a candidate for governor - agreed to work with Attorney General Xavier Becerra to study the legal questions surrounding the creation of a cannabis public bank. Such an institution would solve a key challenge facing the cannabis industry: the lack of regulated access to the banking system, which complicates everything from credit card payments to taxes.

Another key challenge facing California’s nascent cannabis industry are services that are typically provided by distributors in the beer, wine, and spirits business. These distributors provide sales, marketing, transportation, and supply chain management services and work with dispensaries, delivery services, and chain stores, as well as manufacturers, cultivators, clinics, universities, and the many other entities that are involved in the industry.

High Hampton’s New Acquisition

High Hampton recently announced that it entered into a binding term sheet with 8 Points Management LLC and its Bravo Distro subsidiary to acquire 100% of all the issued and outstanding shares of both companies in an all-stock transaction. The two companies expect to enter a definitive agreement on or before June 6, 2018, subject to a number of conditions including the completion of the share exchange.

“Securing distribution is a crucial if not the most important component of a successful business model for the California cannabis market,” said High Hampton CEO David E. Argudo. “In 8 Points Management we have found a well-positioned operator that offers a full-service distribution model for our industry that will help us establish access to major distribution hubs in strategic locations throughout California, including a prominent location in West Sacramento.”

“Through this acquisition we will position ourselves and act as an inventory clearinghouse for retail and other cannabis businesses since it is not feasible for the majority of the companies to do their own distribution. We will serve multiple roles such as:

• collecting taxes and fees for the state
• being a sales and marketing engine for customers
• having the opportunity to incorporate processing facilities
• pick up, dry, cure, process, package, bottle and distribute brands

By cross pollinating the different opportunities within distribution, High Hampton will create centralized hubs that will maximize value for our shareholders.  8 Points Management’s/Bravo Distro’s acquisition aligns with this strategy by bringing the core talent and experience to achieve our goal.”

Bravo is a fast-growing California cannabis distributor founded by the same team that served as the brainchild for one of the first companies in California to receive a permit for medical cannabis wholesale logistics, distribution, and transportation. The deal provides the company with immediate access to a major distribution hub in California, a team of alcohol distribution veterans, and lays the foundation for building out a leading distribution network in the state.

Looking Ahead

High Hampton Holdings Corp. (CSE: HC) represents a compelling investment opportunity in California’s nascent cannabis industry. In addition to its new potential acquisition, the company owns a 10.8-acre property in Coachella, CA that it plans to develop into a cannabis industrial park. The company has received approval from the Coachella Planning Commission for a Conditional Use Permit (CUP) which allows the company to begin construction of a full service production facility.

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-secures-distribution-california/

About CFN Media

CFN Media (CannabisFN) is the leading agency and financial media network dedicated to the global cannabis industry, helps companies operating in the space attract investors, capital, and publicity. Since 2013, private and public cannabis companies in the US and Canada have relied on CFN Media to grow and succeed.

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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/

Frank Lane 206-369-7050 [email protected]

 

Source: CFN Media

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