The High Times State of the Union
Dear High Times Shareholders, Community, and Future Investors,
While it’s hard to believe that 2020 is already nearing its end, it’s almost harder to remember what life was like before it. This has been, without question, one of the most difficult years our society has had to face in recent memory. Between COVID and quarantine shutdowns, social justice movements and the political landscape, not to mention the wildfires that have engulfed the entire West Coast… I’m sure a lot of us will be glad to close the book on this chapter. During this time however, the High Times team has been busy; laser focused on building the best company possible not just for today, but positioned for what’s to come. It is with great pride that I return to you today to provide an update on the current state of our company and while this update is informal in nature, we look forward to filing our delayed financials with the SEC, which will provide a financial snapshot and current positioning of the company in the near future. In the meantime, please review our latest Investor Deck. To be candid, even I didn’t expect us to come this far this fast!
At the beginning of the year we announced our intention to pivot towards a more plant-touching business model. While we’re not shuddering any of our other business areas, the move into plant touching endeavors has long been discussed at High Times. After all, we’re talking about the oldest brand in cannabis anywhere, not just domestically. Up until this point, our business was tri-fold: we offered media, events, and business services for the cannabis industry, as well as those consuming it’s products, but we had never officially moved into selling or manufacturing “plant touching” products. Flash forward to today, we have 3 open and active retail dispensaries across California, a robust delivery service covering 54% of the California population, and several active licensing deals that will bring many millions of dollars of revenue this year alone. After signing a deal with one of the largest multi-state cannabis retail operators, Harvest Health and Recreation, we are in the process of transferring ownership of several more stores in California, and crafting deals with additional partners in additional states.
We knew we’d cause a stir with the announcement of entrance into retail – and we also knew that we needed the right executive team to lead this effort. We were fortunate to be able to hire one of the smartest minds in retail. Peter Horvath, a former top executive at both Limited Brands and Abercrombie, has worked to build a retail-driven team focused on elevating our consumer experience and introducing a wide array of PRODUCTS! Dipping our toes into the THC, CBD, accessory and merchandise markets, Peter and the team have been working to introduce High Times cannabis to consumers across the country.
Our company has grown in many ways during this time. Today our company has more than 150 High Times team members, and we plan to hire many more as we open additional stores later this year.
And that’s not all – when COVID brought us unsurpassable social-distancing and event restrictions, High Times quickly pivoted it’s Cannabis Cup business into a new model that provides a branded product on sale in dispensaries across the states. We worked with local partners providing value for the stores, as well as a large revenue opportunity for our company. While we’ve already held successful People’s Choice Cannabis Cups in Oklahoma, Colorado, and Illinois, we are now gearing up for our next event in Oregon with more states to follow.
Check out the coverage from our Cannabis Cup entrance into Illinois!
There has been plenty of media surrounding our upcoming listing and our business. I look forward to addressing all of those questions and accurately updating all of you on much of the misinformation reported by several specific “journalists.”
I know there are still many questions around the culmination of this Reg. A + process, and the date at which we will open for trading, and I thank you all for your patience with us as we navigate this process.
With that being said we have extended the investment period one last time to run through the end of the year, though we are optimistic that we will close the offering and begin trading before that date. We’ll have another announcement about this in the next few weeks, so make sure to keep an eye out for our correspondence.
Friends, I know you’ve all seen (& heard!) my optimism about our positioning these past few months, but I am so excited to see our plans come to fruition, and we are so proud to show you just how far we’ve come.
With this in mind, and based on how successful the past few webinars have been, we’ve decided to host another event to allow our current investors to get a shareholder update directly from our executive team. We’ll be hosting this event on Tuesday, October 6th at 3:00 pm PT / 6:00 pm ET. RSVP for our next webinar here!
These are exciting times. I look forward to talking to you all.