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Mojave Jane aims to be California's cannabis brands and distribution leader

Snapshot

The Toronto-based company is focused on identifying, acquiring and developing assets in the massive California cannabis market

Cannabis plant in the sun

Quick facts: Mojave Jane

Price: 0.015 CAD

CSE:JANE
Market: CSE
Market Cap: $1.85 m
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  • Acquires and develops cannabis assets in California
  • Sells cannabis-infused chocolate; infused drinks planned next
  • Extraction, distribution and delivery top priorities  

What Mojave Jane does:

Mojave Jane Brands Inc (CSE:JANE) (OTCMKTS:HHPHF), which transformed itself from High Hampton Holdings Corp in early 2019, is focused on identifying, acquiring and developing assets in the California cannabis market.

The Toronto-based cannabis company has undergone a transition from focusing on cultivation to working in extraction, infusing, manufacturing and distribution as well as consumer branding and marketing to serve both the medicinal and recreation markets.

Through its vertically integrated presence in the Golden State, Mojave Jane develops extracts, distillates and concentrates, offers the Caligold brand of cannabis-infused chocolate and edibles, has a minority stake in California's leading cannabis delivery company, and recently established a foothold in the cannabis-infused beverages market via a manufacturing partnership. 

How is it doing:

The company is acquiring properties, licensed distributors, cultivators and other key brands in the cannabis industry. The company plans to buy up land and buildings located in cannabis-friendly municipalities, engaging in both royalty and leasehold agreements with tenants.

In 2018, the company started its growth strategy by acquiring 420 Realty, a company with vertically integrated operations on the outskirts of Los Angeles and Brave Distro, which has a distribution hub in West Sacramento and a permit to build a 15,000 square-foot facility in the city. 

And since distribution is a key factor in establishing a leading presence in California, the company has made it a top priority to build a distribution network across the largest cannabis market in the world -- estimated to reach $6.4 billion in 2022.  

That’s why the company recently took a 25% stake for $500,000 in SpeedWeed, a cannabis delivery service with 250,000 registered users and an expansive data set on consumer preferences that provide valuable intel on marketing and production logistics. Mojave Jane has the option to hike its stake to 40% for $2.6 million. 

However, the company’s most recent acquisition was in November, when it paid $1.2 million for Pacific Crest 4’s licenses, leases, extraction equipment and operations at its 4,000-square-foot property in Adelanto, California. The licenses allow for cannabis extraction using volatile or non-volatile solvents -- processes that set Mojave up to enter the market with products such as oil, wax, budder and shatter.

Mojave Jane’s current extraction (and manufacturing) facility is in Coachella, California, which can process up 170,000 grams of cannabis per month. Now the company plans to double its extraction capacity on the six-acre property by acquiring the operations of CB Asset Management and its 20-year lease. Both companies will be able to produce nearly 170 liters of distillate per month and deliver it to the market in both branded and white-label products.

Forming strategic partnerships is also a top priority for the company. Over the summer the company signed a manufacturing license agreement with Vancouver-based HAI Beverages Inc as a way to access the market for cannabis-infused beverages. Mojave Jane will use HAI’s technology to create flavorless CBD and THC distillates and concentrates for use in non-alcoholic beverage products. 

As for the company’s finances, Mojave Jane recently closed a C$3.2 million financing scheme to fund strategic acquisitions and expand its delivery footprint. And it appointed as its chairman, Robert Allen, an investor and entrepreneur with over 20 years of experience advising public and private companies in capital markets.

To attract more investor interest, Mojave Jane also hired Clearview Capital Consulting to develop and implement a capital market and communications strategy. The firm was founded by Marc Lakmaaker, the former head of investor relations and director of corporate development at Aurora Cannabis Inc (TSE:ACB) (NYSE:ACB).

Inflection points:

  • Build upon established Caligold brand
  • Drive development, licensing and sales of branded edibles as well as third-party manufacturing
  • Replicate the SpeedWeed platform to enter other state markets
  • Use distribution data to gain more insight into retail and consumer preferences/trends

What the boss says:

“The focus of the business is to develop the cannabis space in California, principally,” according to Mojave Jane CEO Gary Latham.

“Most importantly, and what we see as key to the business, is being able to create brands and control the distribution of those brands," he added.

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