Hightimes Holding Corp., the owner of the High Times brand and High Times Magazine, has signed definitive agreements to acquire the California operations of Moxie, Benzinga has learned exclusively.
The acquisition of these assets from Moxie, the first licensed cannabis company in California and a leading multi-state cannabis operator and product manufacturer, will make High Times fully vertically integrated, adding award-winning cannabis production capabilities to the company’s offering. High Times will also soon launch its own branded products, management told Benzinga.
The Deal Details
Under the deal, Moxie will receive 1,363,654 shares of Hightimes voting common stock.
High Times will acquire Moxie’s 11,000 sq. ft. manufacturing facility and 46,000 sq. ft. of flowering canopy cultivation, capable of producing up to 3,500 lbs of dry flower and more than 25,000 lbs of fresh frozen cannabis.
The deal also includes an exclusive 99-year license to use the Moxie, MX and HighNow brands in California.
“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, he explained, the move “will provide High Times with a cultivation and production team that has won dozens of previous Cannabis Cups, and other awards across the country. We look forward to bringing High Times classics as well as some new favorites 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.”
Merging Leading Brands
Jordan Lams, CEO and founder of Moxie, added, “Moxie has been a leading brand in recreational and medical cannabis since our founding, which made it non-negotiable that any acquisition agreement was done with an organization that shares our commitment to creating the highest-quality cannabis products that are trusted by consumers and regulators.”
In his view, “these values are essential, especially in our current economic climate, for maintaining a strong and prosperous industry.”
“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. 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,” he said.
The Bigger Picture
Over the past 3 years, High Times has expanded its market coverage beyond media and events. Today, the brand owns and operates 8 retail stores in California, as well as licensing agreements for stores in Michigan and Florida. High Times-branded cannabis products are currently available in 6 markets.
This latest acquisition will make the well-known cannabis brand a vertically integrated, legal cannabis operation.
In the last few weeks, High Times has been the object of controversy, as the company sued its original owners for misrepresenting some information during acquisition negotiations. The former owners say this claim has no grounds.
It was also reported that the company owes at least $14 million (settled down from a previously reported $28 million) to a former contractor, ExWorks. High Times executives assure the debt will be settled soon.
