The management of High Hampton Holdings Corp (CSE:HC) told investors Friday that the cannabis investment firm’s first revenues will come in the first quarter of 2019 thanks to the success of its two cannabis brands CaliGold and Mojave Jane.
The two businesses will produce and ship products and deliver revenue in the first quarter of 2019 and show significant growth next year, according to an operational update released along with the company’s last fiscal year results.
Mojave Jane is a California-licensed manufacturer of premium cannabis extracts and concentrates for buyers in the US state while High Hampton's 100% owned CaliGold produces medicinal grade cannabis edible chocolate bars and vaporizer pens.
Bravo, High Hampton’s distribution business, is also making “excellent progress” towards operations as well. A 15,000 square foot facility is under lease in West Sacramento, California and the business is is expected to be licensed and operational in the second quarter of 2019.
“Bravo, will, of course, distribute the full line of products from Mojave Jane and CaliGold,” according to the release.
Key quarterly advances highlighted
High Hampton made a number of key advances in its latest quarter. High on its list of achievements was the city of Coachella, California approving a conditional use permit for its 11-acre CoachellaGro operation to cultivate medicinal cannabis.
High Hampton’s facility in Cudahy, California has also received its conditional use permit along with the development agreement, city permits and state temporary licenses to operate.
“The licenses allow us to build out the Cudahy facility and begin building out expanded manufacturing (Type 7), distribution, product production and research and development level cultivation to develop and refine specific cannabis strains,” High Hampton said.
On top of this, last June, High Hampton acquired all the membership interests of 420 Realty. 420 has multiple permits in Cudahy, California, near Los Angeles, for a development agreement that includes cannabis cultivation (processing only), distribution and a retail, non-store front license.
In another advance, last November, High Hampton completed the purchase of Mojave Jane, for more than 8.9 million High Hampton shares.
The company is forecasting that 2019 will be an “active and exciting” year as it completes its supply chain from the marijuana plant and its distillates and concentrates to edibles and flower-based products.
Separately, as part of its quarterly update, High Hampton’s board of directors also addressed its former chief operating officer Paul Mann’s recent allegations of improper conduct by the company. Mann’s grievances sparked an internal review, which highlighted “inaccuracies” in his materials and failed to “substantiate” his opinions.
“The internal review also showed a control environment in which governance and controls are functioning appropriately,” according to High Hampton.
As of August 31, High Hampton was sitting on cash of over C$15 million, up from C$4.98 million, at the close of August in 2017. Its total assets also climbed to C$41.7 million over the same period from C$10 million.
For the year ended on August 31, its sales came in at C$52,211 while its gross profit amounted to C$14,924. Its net loss for the year was C$9.16 million, or C$0.18 per share, compared with a loss of C$801,956, or C$0.13 per share, for the year ended on August 31, 2017.
High Hampton is a cannabis investment company with a focus on opportunities in California.
High Hampton shares ended 16.7% higher to close at C$0.21 on Friday.
Contact Ellen Kelleher at [email protected]