In February, it struck a binding letter of intent (LOI) to acquire 40% of the 2083 Group
High Hampton Holdings Corp () had a busy second quarter, which culminated in it receiving licenses and permits to operate in both southern and northern California.
The Canada-based firm, which is focused on the legal cannabis market in California, issued its results for the three months to February 28 this year.
Its US assets are distribution arm BRAVO DISTRO, branding, packaging, manufacturing and processing is carried out through MOJAVE JANE and CALIGOLD; and cultivation to scale via subsidiaries COACHELLAGRO and 420 REALTY.
READ: High Hampton gets municipal go-ahead to operate distribution facility in California
In February, the group struck a binding letter of intent (LOI) to acquire 40% of the 2083 Group, a company which is a leader in the US state's delivery space.
When closed, this deal will provide 2083 with growth capital to expand and, significantly, will provide High Hampton with access to 2083's delivery customers and consumer data.
In the same month, High Hampton announced that its wholly owned subsidiary CALIGOLD had released three new products to the market.
Last month (April), the group said it had received a conditional use permit and development agreement to build out its 15,000 ft facility and distribution operations in West Sacramento, expected to be operational in late 2019.
Lucrative markets
The facility will serve the lucrative Central and Northern California markets and serve as its main primary distribution hub.
As at the end of February, the firm had $5.3 million in cash and equivalents, down from $15 million at the end of August last year, which reflects onetime acquisition costs associated with the Mojave Jane acquisition as well as the continued build out and licensing of existing assets.
The net loss in the quarter was around $3 million on sales of $43,000.
"We concluded Q2 with additional licenses and permits to operate in both southern and northern California," said Gary Latham, CEO at 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 liters of distillate monthly."
He added: "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."
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