Mr. Gary Latham reports
HIGH HAMPTON HOLDINGS CORP REPORTS SECOND QUARTER 2019 FINANCIAL RESULTS
High Hampton Holdings Corp. has filed its consolidated unaudited financial statements for the quarter ended Feb. 28, 2019. The consolidated financial statements and management discussion and analysis are available on SEDAR.
Quarter ended Feb. 28, 2018, highlights:
The reduction in liquidity reflects the one-time acquisition costs associated with the Mojave Jane acquisition as well as the continued buildout and licensing of existing assets. In January, 2019, High Hampton announced that it had been granted six new state licences on its property in Cudahy for cultivation, distribution, manufacturing and non-storefront retail.
In February, 2019, High Hampton announced that CaliGold, its wholly owned subsidiary, had released three new products to the market that build on its award-winning brand.
In February, 2019, High Hampton entered into a binding letter of intent to acquire 40 per cent of the 2083 Group, a leader in California's cannabis delivery and brand space. When closed, the deal will provide 2083 with growth capital to expand its delivery presence and will provide High Hampton with access to 2083's delivery customers and consumer data.
In February, 2019, High Hampton announced the evolution of its strategy to focus on consumers and brands, consistent with the overall growth and evolution of California's recreational and wellness-focused cannabis markets.
Subsequent to the quarter:
In April, 2019, High Hampton announced that it had received a conditional-use permit and development agreement to build out its 15,000-square-foot facility and distribution operations in West Sacramento. When operational in late 2019, the facility will serve the lucrative central and northern California markets and serve as the company's primary distribution hub.
In April, 2019, High Hampton announced that demolition of its 15,000-square-foot facility in Cudahy had concluded and that construction was to begin in fiscal Q3 2019.
"We concluded Q2 with additional licences and permits to operate in both Southern and northern California," commented Gary Latham, chief executive officer of High Hampton. "We also saw the addition of higher-capacity extraction equipment for Mojave Jane's operations. That capacity buildout will conclude in Q3 2019, and Mojave Jane will be up to operating capacity and producing roughly 100 litres of distillate monthly. The substantial ramp-up of our overall business operations this year is tied to a sensible spending strategy aimed at scaling expenditures proportional to operational activity.
"We are also very excited to close the loop of consumer demand to product and brand production through the investment in the 2083 Group and their delivery platform, SpeedWeed, a transaction we expect to close soon. With this addition, High Hampton will be able to fully understand the consumer markets for recreational and wellness products and produce what the markets demand. Further, through delivery, we can then take those products and brands directly to the market. The future looks very promising, and I am excited to begin taking products to market at scale."
About High Hampton Holdings Corp.
High Hampton Holdings is a Canadian-based cannabis sector brand and distribution company emerging as a true vertical integrator in California's legal cannabis space serving recreational and wellness markets. The company's U.S. holdings comprise assets set up as a vertical stack, including a distribution arm through Bravo Distro; branding, packaging, manufacturing and processing carried out through Mojave Jane and CaliGold; and cultivation to scale through CoachellaGro and 420 Realty. Operating out of licensed strategic locations within the state, High Hampton is leveraging its brand-focused business model to generate sustainable profits delivering quality product by recognized brands.
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