High Times, Red White & Bloom Partner To Open Dispensaries In Three Key States
Hightimes Holding Corp., the owner of High Times, the most well-known brand in cannabis, has entered into a series of agreements with Red, White & Bloom, Inc., with the goal of the branding of High Times dispensaries and development of cannabis-based CBD and THC products in the states of Michigan, Illinois and Florida.
RWB and its investee will use the Hightimes trademark, logo and brand to rebrand its 18 planned and operational dispensaries as High Times stores. Together, such stores represent more than 20% of the cannabis market share across the state. RWB’S investee is the leading cannabis company in Michigan, with dispensaries, indoor/outdoor cultivation and product manufacturing established over the last two years.
In addition, as a result of the acquisition of Newco, RWB will also acquire the rights to brand retail and medical dispensaries and products, in the states of Illinois and Florida, and may utilize RWB’s massive 3.6 million square foot facility in Illinois for the production of proprietary branded CBD products and whole hemp flower strains for distribution nationally.
In addition to transforming the dispensaries to become High Times branded destinations and launching delivery capabilities in select locations, High Times branded products including vapes, tinctures, topicals, and edibles will be available within both owned dispensaries and other 3rd party outlets. The company has aggressive growth plans and is entering the market at a time when the retail landscape has been significantly changed.
“High Times is a 46-year-old brand with an immense amount of recognition and credibility across the world,” said Peter Horvath, chief executive officer of Hightimes Holding Corp. “Licensing the High Times name, advising on dispensary operations, and providing input on product development allows the company to drive significant revenue from licensing fees without assuming the complexity associated with owning and operating dispensaries and scaled cultivation and manufacturing facilities nationwide. RWB has built an incredible and expansive retail footprint in a quick time frame that we can strengthen through applying the High Times Brand.”
The Hightimes subsidiary holding the Hightimes trademark, logo and brand worldwide, sublicensed such intellectual property to a newly formed special purpose Hightimes subsidiary (“Newco”) for the purpose of using and branding retail and medical dispensaries and products in the state of Michigan and, subject certain regulatory approvals, in the states of Illinois and Florida as well. Under the terms of the agreement, the Hightimes Licensing Company sold to RWB 100% of the equity of Newco. In consideration for the sale, the Hightimes Licensing Company will receive $15,000,000 of RWB common shares which are expected to trade on the Canadian Securities Exchange and, subject to certain conditions, may receive an additional $5,000,000 of RWB common shares in the future. In addition to the share consideration, the Hightimes Licensing Company expects certain Minimum Guarantee payments during the term of the agreement and any renewal period.
Hightimes Holding Corp. has recently made several announcements ahead of the closing of its Regulation A+ IPO, including the appointment of CEO Peter Horvath and its proposed entry into retail cannabis dispensaries with the planned acquisition of 13 California dispensaries from Harvest Health & Recreation, one of the largest multi-state operators in cannabis. Through these and other strategic transactions, High Times intends to become one of the largest cannabis companies in California, and is working quickly to do the same in Michigan, Illinois and Florida.
