Hightimes Holding Corp. has signed agreements to acquire the California operations of MXY Holdings, a multi-state cannabis operator and product manufacturer also known as Moxie.
The move by the Venice-based company, which owns High Times magazine and other cannabis-related products and services, makes it a vertically integrated cannabis operation.
The announcement was made on Nov. 7. The deal includes Moxie’s 11,000-square-foot manufacturing facility, as well as 46,000 square feet of flowering canopy cultivation capable of producing up to 3,500 pounds of dry flower and more than 25,000 pounds of fresh frozen cannabis per year.
The transaction grants more than 1.3 million shares of Hightimes voting common stock to the Moxie organization, which is based in Long Beach. It also grants Hightimes an exclusive 99-year license to use the Moxie, MX and HighNow brands in the state.
Paul Henderson, the chief executive of Hightimes, said that with its current platform of stores, the company believes this acquisition will be synergistic in nature for the Moxie brands and provide a good home for their branded products in California.
The company owns and operates eight retail stores in California and has licensing agreements for stores in Michigan and Florida.
The move to buy Moxie’s California assets opens the door to a whole new world of brands from the High Times organization, Henderson said.
“We look forward to bringing High Times classics, as well as some new favorites we’ve been working on, to the masses with top-quality production, both in our own stores and to other retailers in the near future,” Henderson added in a statement.
Jordan Lams, chief executive and founder of Moxie, said that the combination of the two companies creates a an effective vertically integrated business model.
