High Hampton Eyes Distribution in California


Ryan Allway

May 29th, 2018

Exclusive, News, Top News


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.

High Hampton Holdings Corp. (CSE: HC), an investment company focused on opportunities in California, 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 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.

Disclaimer  

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/

Ryan Allway

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


Network Partners

Follow Us on Social Media

About CFN Media

CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.

CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.

Learn How Your Company can Be Covered on CFN Media

Learn More About the CFN Media Sponsored Content Program

Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: http://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/.

Copyright © TDM Financial LLC · All Rights Reserved · Privacy Policy · Legal Disclaimer

loading