CFN Exclusive Interview with High Hampton Holdings Corp. CEO: Building a Presence in California through Existing Growers
March 20th, 2018
Exclusive, News, Top Story
California’s cannabis industry is projected to exceed $5 billion by next year, according to BDS Analytics, creating an enormous opportunity for investors. While investors have many opportunities in the space, most companies are focused on building out their own operations in what could amount to high capital expenditures and high risk. Investors may want to instead consider companies that are working with existing growers and established brands.
High Hampton Holdings Corp. (CSE: HC) plans to build an impressive 220,000 sq. ft. cannabis campus on 10.8 acres of land in Coachella, California. Through leaseback transactions and consulting services, the company hopes to work with existing growers to bring them into the fold in the new legal cannabis market. This approach could have numerous benefits over building out everything on its own, which means investors may want to take a closer look.
California’s Fragmented Market
California’s move to legalize adult-use cannabis on January 1, 2018 has created the largest single market in the world. According to BDS Analytics, the state’s retail cannabis sales are expected to reach $3.7 billion by the end of the year and increase to $5.1 billion in 2019 as more dispensaries come online. These figures put the industry on track to exceed the state’s beer industry, which stood at just $5 billion in 2017, according to IBIS World.
Despite the new opportunity, many existing cannabis growers face a lot of uncertainty with the new laws in place. They may have been able to get by without detailed recordkeeping in the past, but new laws have much stricter requirements for everything from zoning to testing. In some cases, existing growers would be forced to relocate to approved area. These concerns have kept many growers in the shadows.
“If the overall goal of the program was to favor a corporate, big-dollar, new-money industry, then we have succeeded,” said Sonoma County Agricultural Commissioner Tony Linegar at a first-of-its-kind meeting in March 2018 between existing growers and cannabis lawmakers. “If the goal was to create a workable pathway for existing operators, then I think we have failed.”
High Hampton’s Unique Strategy
High Hampton aims to address these issues using its 244,000 sq. ft. facility on 10.8 acres in Coachella, California. On that property, the company is building out eight 22,000 sq. ft. greenhouses with the goal of developing a fully-integrated cultivation, production, and extraction operations. The company aims to provide growers with high-tech cultivation facilities and management expertise to bring them into the fold through leaseback agreements.
Many of these growers have already build a loyal customer base and have established brands, which makes them potentially lucrative when brought into the legal market. At the same time, Coachella represents a unique opportunity given its popular music festival, agriculturally-focused economy, and tourism destination. These attributes could be extremely valuable when building brands in the space.
The company has also overcome many key hurdles facing legal operators in the space. For example, energy costs tend to be among the most significant hurdles for cultivators, but the company has developed greenhouse plans that use 65 percent less energy than traditional greenhouses. This is accomplished by combining natural sunlight with artificial lighting and ensuring that the entire environment is semi-sealed and tightly controlled.
After going public on the Canadian Securities Exchange on September 15, 2017 High Hampton Holdings Corp. (CSE: HC) offers investors a unique opportunity to capitalize on California’s unique cannabis industry. The company’s plan to build relationships with generational growers in California and reach customers in the major hubs throughout the state creating a significant opportunity for investors.
For more information, visit the company’s website at www.highhampton.com.
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: https://www.cannabisfn.com/legal-disclaimer/
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