High Hampton Holdings Signs Binding LOI with California's 2083 Group
- 40% interest with Right to Acquire Additional Ownership
- Data Analytics Capabilities
- Media & Brand Expertise
- Statewide Delivery Capability
TORONTO, Feb. 28, 2019 /CNW/ - High Hampton Holdings Corp. (CSE: HC) (FSE: 0HCN) ("High Hampton" or the "Company") is pleased to announce that it has signed a binding Letter of Intent (the "LOI") for a strategic minority investment in the 2083 Group, Inc. ("2083 Group"), an innovator in California's growing cannabis marketplace best known for their Speedweed delivery platform and services, an anchor brand in the cannabis space.
The strategic partnership provides High Hampton with the means to access market data, understand consumer demands, and develop products and brands to meet those evolving demands in real time. As previously released, High Hampton will be a brands and distribution leader in the California cannabis sector touching every part of the cannabis supply chain, from strain development and cultivation to product development, manufacturing, wholesale distribution, and retail through a robust delivery platform.
The investment allows 2083 Group to accelerate adoption of its delivery services in Southern and Northern California, and to expand its media platform to develop and promote emerging brands. Furthermore, High Hampton's production capabilities will allow 2083 Group to influence the Company's development of products to align with market trends.
Gary Latham, CEO of High Hampton Holdings, comments:
This relationship with the 2083 Group and SpeedWeed will be invaluable in influencing our brands and products based on the lasting consumer relationships they build through their delivery and brand development. 2083 Group and Speedweed are icons in California's legal cannabis marketplace and command unrivaled brand recognition. They have that "It" factor in our space, blending a state-of-the-art software platform with political acumen and a healthy dose of Hollywood flair.
Starting as a seminal player in the delivery space eight years ago, 2083 Group navigated a complex legal space and built a software platform to help brands and storefronts deliver the products consumers want, when and where they want them. With the ability to service customers anywhere in California, 2083 Group will have an unparalleled view of consumer interests and demands. Now, High Hampton can bolt its production capabilities on to 2083 Group to help create the products that meet those demands. This is the kind of relationship that defines a true strategic partnership
A.J. Gentile, CEO of 2083 Group, added:
This partnership with High Hampton allows both companies to pool resources and continue to execute on what we already do well, respectively and collaboratively. Our 'SpeedWeed' cannabis delivery brand has a database of more than 200,000 customers and is growing rapidly as we add new retail partners to the platform. We recently broke ground on a new soundstage and broadcast studio. Plus, we have multiple celebrity brands going into production.
High Hampton brings capabilities that are difficult to find in California's newly regulated cannabis industry: licensed cultivation, manufacturing and distribution operating under experienced and thoughtful management. With High Hampton's support, we can now achieve our vision and expand our footprint in California to serve roughly 350 dispensaries by 2021 and explore new geographies across North America
Under the terms of the LOI, High Hampton and 2083 Group have agreed to the following:
- High Hampton agreed to advance a secured loan (the "Loan") to 2083 Group in the principal amount of USD$500,000. The Loan shall bear interest at an annual rate of 7% and shall be due and payable within 12 months from the date of advance unless mutually extended by the parties. In the event that High Hampton and 2083 Group enter into a Definitive Agreement (as defined below) by April 15, 2019 (or such other date mutually agreed upon by the parties), the Loan will be converted into 7.69% of the issued and outstanding common stock of 2083 Group (the "2083 Shares").
- High Hampton and 2083 Group shall enter into a definitive agreement with respect to the acquisition by High Hampton of 32.31% of the issued and outstanding 2083 Shares for an acquisition price of USD$2,100,000.
- Integration of back office functions to support non-cannabis related aspects of both businesses.
- Reciprocal appointment of a director to the board of High Hampton and the board of 2083 Group.
About 2083 Group, Inc.
2083 Group owns and operates a number of consumer-facing companies in the cannabis space.
- "SpeedWeed" is one of California's largest cannabis delivery services, in America's fastest-growing industry and has become synonymous with legal, on-demand cannabis delivery servicing a quickly growing database of 200,000 consumers throughout California.
- "Verdalink" develops proprietary software solutions for the cannabis industry including: order routing, logistics, real-time GPS driver tracking, inventory control, customer geofencing and marketing capabilities in a single platform.
- "The Joint Studios, Inc." is a media production facility in the heart of Hollywood producing over 40 live and recorded shows delivering and distributing content through Sirius-XM, Cumulus Networks, iHeartRadio, Premiere, The World Famous Comedy Store and All Things Comedy.
- "SW Celebrity, LLC" develops celebrity-endorsed cannabis brands and products, connects cannabis brands with celebrities and influencers who promote these products through a vast network of live venues and studio-produced content.
Innovative technology, celebrity support, political activism, industry leadership and obsession with customer satisfaction have made 2083 Group one of the most exciting cannabis companies in the industry. To learn more, visit 2083group.com.
High Hampton Holdings Corp. is a Canadian-based cannabis sector investment company emerging as a true vertical integrator in California's legal cannabis space serving recreational and wellness markets. The Company's U.S. holdings are comprised of assets set up as a vertical stack including a distribution arm through BRAVO DISTRO; branding, packaging, manufacturing & processing carried out through MOJAVE JANE and CALIGOLD; and cultivation to scale via COACHELLAGRO and 420 REALTY. Operating out of licensed strategic locations within the state, High Hampton is leveraging its brand-focused business model to generate sustainable profits delivering quality product by recognized brands.
High Hampton trades in Canada, ticker symbol HC on the CSE, and in Europe, ticker symbol 0HCN on the FSE. Neither the CSE, nor the FSE has approved nor disapproved the contents of this press release. Neither the CSE, nor the FSE accepts responsibility for the adequacy or accuracy of this release.
Marijuana Industry Involvement
Canadian listings (CSE) will remain in good standing as long as they provide the disclosure that is rightly required by regulators and complying with applicable licensing requirements and the regulatory framework enacted by the applicable state in which they operate. Marijuana is legal in certain states however marijuana remains illegal under US federal law and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that High Hampton's ability to access private and public capital could be affected and or could not be available to support continuing operations.
On behalf of the Board of Directors
High Hampton Holdings Corp.
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. These transactions are subject to a number of material risks, and there is no assurance that they will be completed on the terms or within the timeframes currently contemplated, or at all. The forward-looking information contained in this press release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
All monetary references herein refer to Canadian dollars unless otherwise specified.
SOURCE High Hampton Holdings Corp.