We see where they are coming from but will they really be able to wrap up cannabis retail and delivery in California and stay pay off tose to whom they owe a great deal of money in the markets.
Here at CLR we’re not so sure.
The California cannabis delivery market , if not perfect, is now quite mature and the Leafly’s of this world aren’t going to make their life easy…
Hightimes Holding Corp. has agreed to acquire California-based delivery service Mountain High Recreation Inc., the latest move by the owners of the High Times brand as they move from decades of publishing into the retail market.
Hightimes Holding President Paul Henderson noted that the company is currently in the process of transferring ownership of five currently operating stores and seven new stores across California and “wouldn’t think of servicing that audience without a superb delivery solution in the equation.”
“Delivery has always been part of our plan for how you will shop our stores. Customers are agnostic about where they complete the transaction.” – Henderson in a statement
Earlier this month, the company announced plans to rebrand 18 Red, White, & Bloom dispensaries as High Times stores and develop products in Michigan, Illinois, and Florida. The High Times branded products will include vape, tincture, topical, and edible products within both owned and third-party outlets.
FULL PRESS RELEASE
High Times Buys Mountain High Recreation to Accelerate Cannabis Delivery
High Times, owner of the eponymous magazine and a fast-rising player in the dispensary scene, acquired Mountain High Recreation, Inc., a move that will speed up its plans to offer home delivery services across California.
Formally known as Hightimes Holding Corp., the company is picking up established distribution infrastructure as well as staff with extensive experience in delivery.
The deal comes after the recent announcement that High Times would launch delivery of cannabis from dispensaries in California, a service designed to accommodate the need for social distancing that has accelerated the shift to e-commerce across the retail sector. High Times recently acquired 13 existing and planned California dispensaries which can be configured as distribution centers more effectively with the help of the Mountain High personnel.
“Chelsea and Ken Cordoba and their Mountain High Team bring years of experience providing high quality cannabis delivery to California and they truly know their customers and how best to please them,” Peter Horvath, Hightimes Holding Corp.’s Chief Executive Officer said. “Together we are launching High Times delivery in California where we will bring the best assortment of quality cannabis products to your doorstep safe, and fast, with exceptional value.”
Mr. Horvath, who came onboard as CEO less than two months ago, has emphasized the importance of e-commerce since the onset of the coronavirus. While he believes physical stores are critical for a connection with consumers, he has said the coronavirus likely changed shopping behavior forever and he considers High Times “the first post-COVID cannabis company.”
Mr. Horvath brings experience from apparel and fashion giants including L Brands, Inc. (Victoria’s Secret, Bath & Body Works), American Eagle Outfitters, Inc. (American Eagle & Aerie), DSW (now Designer Brands, Inc.), and, most recently, cannabis dispensary and lifestyle company Green Growth Brands, which went public in November 2018.
High Times, whose other businesses include various media assets such as the famous magazine and conferences, appears to have timed its move into cannabis retail wisely. Earlier entrants to the space, including MedMen Enterprises Inc., Medicine Man Technologies, Inc., and Terra Tech Corp. have struggled and seen their share prices plummet.
High Times is on the cusp of listing its shares on a national stock exchange. The company has over 27,000 investors who have subscribed to an offering of up to $50 million which remains open. Some of the shares sold have generated cash that won’t appear on the company’s balance sheet until the stock begins to trade.