SEATTLE, April 25, 2018 (GLOBE NEWSWIRE) -- CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article covering High Hampton Holdings Corp. (CSE:HC) (HC.CN) (CNSX:HC). The company has established a 10.8 acre cannabis cultivation project in Coachella, California, but its recent move to acquire a leading high-end edibles maker may prove to be a key turning point. With over $2 million in annual revenue, the edibles-maker could add to its bottom line financial results and provide a valuable opportunity to tap into California’s lucrative and fast-growing edibles market.
Edibles Market Share Grows
Most cannabis companies are focused on flower and concentrates, but edibles are one of the fastest growing subsets of the market. According to Bloomberg, edible products may capture half of the $5.4 billion cannabis industry’s sales over the coming years. BDS Analytics estimated that they already accounted for about 12 percent of the market in 2016 across Colorado, Washington, and Oregon where the adult-use market is established.
Of the edibles market, chocolate accounted for 21 percent of Colorado’s market and 43 percent of Oregon’s market, according to the 2016 BDS Analytics report. California’s market is still too early to measure reliably, but chocolates are likely to be among the most popular edible product, while edibles are likely to capture a high percentage of the overall market. These trends suggest that investors may want to look towards companies building a presence in these areas.
According to Arcview, Californians spent about $1.8 billion on legal marijuana in 2016 and that figure is expected to grow at a 25 percent annual growth rate to $5.8 billion by 2021. In Colorado, edibles grew from just $17 million in Q1’14 to $53 million by Q3’16 and have continued to experience strong growth since then. These trends suggest that edibles could present a lucrative opportunity in the new recreational market.
Acquiring an Established Brand
High Hampton recently announced a binding letter of intent to acquire California Gold Inc., an established cannabis edibles brand with seven award-winning, multi-strain flavor chocolate bars across California dispensaries. Last year, the company generated approximately $2 million in revenue under the guidance of co-founders Daniel Hood and Jonathan Schwartz, who have nearly 20 years of combined experience in California’s cannabis industry.
“Acquiring CALIGOLD represents a strategic move in our mission of consolidating the California cannabis market,” said High Hampton CEO David E. Argudo in the press release announcing the deal. “Through this acquisition, not only do we begin to establish presence throughout California by accessing a substantial distribution network with CALIGOLD, but, just as importantly, we begin generating revenues during our aggressive growth cycle.”
California Gold was founded in 2014 when Daniel Hood, an artisan chocolatier, noticed a gap in the cannabis chocolate market. With its gourmet ingredients and strain-specific infusions, the company won first place at HempCon in 2014 for best edible and then again at Edibles List Magazine for its THCa chocolate. The company has recently announced plans to introduce other THC, THCa, and CBD products to further diversify its product lines.
“CALIGOLD is very excited to be a part of High Hampton Holdings,” said California Gold Co-Founder Daniel Hood. “This is the culmination of several years of establishing a market presence. We foresee a great future in helping build a global cannabis brand. The real work starts now, as we ramp up product development and focus on global strategy.”
Under the terms of the deal, High Hampton has agreed to commit at least $2.6 million towards product development, marketing, and sales and working capital during the first 12 months.
Looking Ahead
High Hampton Holdings Corp.’s (CSE:HC) (OTC:HHPHF) (0HCN.F) move to acquire California Gold represents the latest in its efforts to consolidate a leadership position in California’s market. The company’s flagship subsidiary, CoachellaGro, is focused on the development of a 10.8 acre property situated in the proposed cannabis industrial park in Coachella, CA. The company is currently in the application process for a conditional use permit ahead of initiating production.
For more information, visit the company’s website or download their investor presentation.
Please follow the link to read the full article: http://www.cannabisfn.com/high-hampton-consolidating-californias-market-edibles-acquisition/
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