High Hampton Holdings Corp (CSE: HC) (OTCMKTS:HHPHF) said it has signed a binding letter of intent for a minority investment in 2083 Group Inc, a company in California's cannabis market known for its Speedweed delivery platform.
The cannabis investment company said in a statement Thursday that it has agreed to advance a secured loan of US$500,000 to 2083 with an annual interest rate of 7%. The loan will be due and payable within 12 months from the date of advance unless both parties agree to extend it.
If the companies enter into a definitive agreement by April 15 or some other agreed-upon date, the loan will be converted into 7.69% of the issued and outstanding common stock of 2083.
High Hampton, which is positioning itself as a cannabis branding and distribution company in the US market, said it plans to acquire 32.31% of 2083’s shares for US$2.1 million. Back-office functions to support non-cannabis-related aspects of both businesses will be integrated.
“2083 Group and Speedweed are icons in California's legal cannabis marketplace and command unrivaled brand recognition,” High Hampton CEO Gary Latham said. ”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.”
A.J. Gentile, CEO of 2083 Group, said that “this partnership with High Hampton allows both companies to pool resources and continue to execute on what we already do well."
He added that the SpeedWeed cannabis delivery brand has a database of more than 200,000 customers and is growing rapidly as retail partners are added to the platform.
Shares of High Hampton slipped C$0.01 to C$0.39 in Friday's Canadian trading.
–This story has been updated to add High Hampton's US market focus–
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