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.