High Hampton Holdings to obtain minority stake in California’s 2083 Group for US$2.1 million

High Hampton Holdings Corp. is going strategic with its decision to sign a binding letter of intent (LOI) to obtain a minority investment in California-based, cannabis-growing innovator, 2083 Group, Inc., with the right to acquire additional ownership in future.

 

 

Among other things, the LOI would see High Hampton acquire 32.31 percent of the issued and outstanding shares of 2083 Group for US$2.1 million, and High Hampton advance a US$500,000 secured loan to 2083 Group at a 7 percent annual interest rate payable within 12 months of the date of advance, unless mutually extended.

The deal “provides High Hampton with the means to access market data, understand consumer demands and develop products and brands to meet those evolving demands in real time,” reports High Hampton, a Canadian-based cannabis sector investment company looking to become a vertical integrator in California’s legal cannabis space.

For 2083 Group—best known for its Speedweed delivery platform and services—the investment allows the company to accelerate adoption of its delivery services in Southern and Northern California, expand its media platform to develop and promote emerging brands and, with High Hampton’s production capabilities, influence its development of products to align with market trends.

 

 

“This relationship with the 2083 Group and SpeedWeed will be invaluable in influencing our brands and products based on the lasting consumer relationships they build through their delivery and brand development,” Gary Latham, CEO of High Hampton Holdings, comments in the company statement.

“With the ability to service customers anywhere in California, 2083 Group will have an unparalleled view of consumer interests and demands. Now, High Hampton can bolt its production capabilities on to 2083 Group to help create the products that meet those demands,” Latham points out.

The partnership “allows both companies to pool resources and continue to execute on what we already do well, respectively and collaboratively,” says A.J. Gentile, CEO of 2083 Group, which owns and operates a number of consumer-facing companies in the cannabis space.

Noting that SpeedWeed “has a database of more than 200,000 customers and is growing rapidly as we add new retail partners to the platform,” Gentile says “with High Hampton’s support, we can now achieve our vision and expand our footprint in California to serve roughly 350 dispensaries by 2021 and explore new geographies across North America.”

 

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