High Times secures $25 million cannabis licensing deal for three markets

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Bethan Rose Jenkins, Cannabis News Writer/Editorial

High Times Magazine’s parent company has inked a deal to license its world-famous brand and distribute branded products throughout 17 dispensaries across Michigan. A mixture of operational and planned cannabis dispensaries are included in the deal, which also grants High Times Holdings Corp. license rights in Florida and Illinois.

High Times Holdings officially confirmed the licensing deal with Red, White & Bloom Brands (RWB) on Tuesday, June 9. Subject to closing and state regulatory approvals, the transaction is valued at $25 million and most of it will be in RWB stock. 

The U.S. Securities and Exchange Commission noted that, within the initial 18 months of the licensing deal, High Times will be on the receiving end of a minimum cash royalty payment of $10.75 million. In addition to this, the company will bag $15 million worth of RWB common shares and a potential $5 million in shares; contingent on certain conditions.

RWB can be found trading on the U.S. over-the-counter (OTC) markets under the ticker symbol “TDRYD”, as well as the Canadian Securities Exchange under the ticket “RWB”.

High Times cuts three properties from dispensary acquisition deal 

In late April, High Times Holding Corp. confirmed that it would be purchasing a number of planned and operating dispensaries in California. The deal was struck with multistate operator Harvest Health & Recreation and it would have seen High Times purchase 13 dispensaries. However, on Friday, June 12, the deal was amended. 

Based on the updated agreement between High Times and Harvest – which amounts to $67.5 million – three dispensaries have been struck from the deal. Now, the nearly all-stock acquisition includes 10 dispensaries; three of which are operational. The Los Angeles company must pay $1.5 million in cash — a major reduction from the $5 million cash payment that would have been required as part of the original $80 million deal. 

Despite losing out on three of Harvest’s dispensaries, High Times revealed on Tuesday, June 9 that it had entered into definitive agreements to purchase two cannabis dispensaries in Northern California. The majority stock deal is anticipated to close within 60 days.

High Times is being led by a new CEO

On May 6, Executive Chairman Adam Levin announced that cannabis company High Times had appointed a new Chief Executive Officer (CEO). Peter Horvath is his name and he has plenty of experience under his belt that should help to steer things in a new direction for the company, which saw its first ever magazine issue released in 1974.

“We are pleased to welcome Peter to the High Times family, and to be able to tap into his wealth of experience capitalizing on major consumer brands. There are few executives with his retail experience in the mainstream world and, up to this point, none in the cannabis world with such an accomplished background,” said Levin. 

Horvath is the former Chief Commercialization Officer of American Eagle Outfitters and former Chief Operating Officer for Victoria’s Secret. The new High Times CEO replaces Stormy Simon and, in addition to his CEO duties, he will also assume the role of Board Member.