Hightimes Holding Corp. (HHC) — owner of the renowned cannabis magazine High Times — has signed an agreement to acquire the cannabis-related assets of the first licensed pot company in California.
On Monday, HHC announced that it would be coming into possession of the California operations of Moxie in a deal that will provide the company with 46,000 square feet of flowering canopy cultivation and an 11,000 square-foot production facility.
Those assets from Moxie will allow HHC to produce up to 3,500 pounds of dried flower and 25,000 pounds of fresh frozen pot per year and the company will also be providing Moxie with 1,363,654 shares of High Times voting common stock in exchange for the new resources.
The deal will give HHC an exclusive 99-year license to use the Moxie, HighNow and MX brands in the Golden State.
“With our current platform of stores, we believe this acquisition will be synergistic in nature for the Moxie brands and provide a good home for their branded products in California,” said Paul Henderson, CEO of High Times.
“Additionally, it will provide High Times with a cultivation and production team that has won dozens of previous Cannabis Cups, and other awards across the country,” added Henderson.
“We look forward to bringing High Times classics as well as some new favourites we’ve been working on to the masses with top quality production, both in our own stores and to other retailers in the near future. This move opens the door to a whole new world of brands from the High Times organization.”
Moxie is a cannabis cultivator with operations in California, Utah, Pennsylvania and Missouri. The company has received 62 cannabis cups (from High Times) and over 100 other industry awards. The acquisition will hand over the brand’s California operations to HHC but Moxie will continue its operations in the other three states and retain management of its brands outside of California.
HHC says the new acquisition will enable it to become vertically integrated and that it has expanded its market coverage well beyond media and events within the past three years.
“High Times is one of the most recognizable brands in cannabis and we have the utmost confidence in their ability to continue Moxie’s upward trajectory in California,” said Jordan Lams, CEO and Founder of Moxie.
“This combination creates a vertically integrated business model that allows for more control and provides High Times with the freedom to make product-driven decisions that we know will help the industry and provide recreational and medical cannabis users with the highest quality cannabis products.”