By Jarrett Banks, IPO Edge
Cannabis zeitgeist High Times, owner of the 45-year old eponymous magazine, is growing its footprint in dispensaries with the purchase of two Northern California locations. The acquisition, through Hightimes Holding Corp., comes as the company also plans to expand into deliveries later this month.
The stores, Synergy and 530 Cannabis, will bolster its portfolio in an industry that could generate $75 billion in sales by 2030, according to investment bank Cowen & Co.
“As we continue to develop an impressive presence in the world’s largest cannabis market, these two strong additions to our portfolio greatly increase both our reach and revenue within the Northern California territory,” Peter Horvath, Chief Executive Officer of High Times, said in a statement. “We are looking forward to including the Synergy and 530 teams and merging their long-standing relationships with and in their communities into the High Times team.”
The delivery service will be designed to accommodate the need for social distancing that has accelerated the shift to e-commerce across the retail sector. High Times recently acquired 13 existing and planned California dispensaries which can be configured as distribution centers.
With about 40 employees in New York and Los Angeles, the magazine’s advertisers include Advanced Nutrients, Kush Bottles and Pop Chips. It has 250,000 readers, with 75 percent of its online audience being men between 18 and 34.
High Times is on the cusp of listing its shares on a national stock exchange. The company has over 27,000 investors who have subscribed to an offering of up to $50 million which remains open. Some of the shares sold have generated cash that won’t appear on the company’s balance sheet until the stock begins to trade.