Cannabis investment firm High Hampton Holdings Corp (CSE:HC, OTC:HHPHF) told investors Monday it had closed its previously announced acquisition of Mojave Jane, which is set to add near-term revenue to the bottom line.
Mojave Jane is a California-licensed manufacturer of premium cannabis extracts and concentrates for buyers in the US state and adds a fifth subsidiary to High Hampton's growing portfolio of California-based cannabis makers and distributors.
READ: Pot industry investor High Hampton set to buy California cannabis manufacturing firm for US$3.5M
"As the High Hampton family of subsidiaries grows, we are continuously strengthening our position as a strong player in the burgeoning California cannabis market," said Christian Scovenna, interim chief executive and director of High Hampton.
"Adding Mojave Jane to our portfolio means bringing on more market expertise, cannabis products and revenue and will help us grow our share in the adult use market.
"We will continue to act as a key consolidator in this space adding shareholder value through both internal and external growth."
Under the terms of the deal, all Mojave Jane's issued and outstanding member interests were exchanged for more than 8.9 million High Hampton shares, which are subject to escrow until certain milestone conditions are met, triggering a staggered share release.
High Hampton will also commit up to US$1.1 million to Mojave Jane to expand its manufacturing capacity, marketing, sales and working capital.
Previously, High Hampton said the deal would:
- provide the means to produce high-value white-label and branded extracts for distribution across the California markets
- produce near-term revenue that will fuel profitability and growth across the High Hampton portfolio
- Bring experienced executive management and operators to the High Hampton team;
- Establish a foundation for the full integration of High Hampton's portfolio companies and create the means to achieve substantial growth in the adult-use market and the ability to develop
- cannabis-based medical/therapeutic solutions that make a difference in people's lives.
Gary Latham, a founding partner of Mojave Jane, added Monday: "The partners at Mojave Jane have worked together to build a world-class manufacturing facility in Coachella to produce the kind of high-quality distillate the market demands.
"We have succeeded at making that happen, and at navigating the complex California regulatory environment to become a viable part of California's growing cannabis economy."
"Now we are ready to scale and produce quality products that meet the needs of medical and adult use markets as they take root in the legal cannabis ecosystem.
"High Hampton provides us with the means to scale and to more fully integrate our production capacity with High Hampton's other subsidiaries in California.
"In turn, Mojave Jane will deliver value to High Hampton's shareholders through near-term revenue and an increased branding footprint. It's a great time to be a part of this growth with High Hampton and throughout California."
Reporting by Giles Gwinnett