High Times strikes $25M marijuana licensing deal for three markets

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The parent company of High Times magazine signed a deal to license its iconic brand and High Times-branded products at 18 operational and planned cannabis dispensaries in Michigan, with additional rights in Illinois and Florida.

High Times Holdings on Tuesday touted the value of the licensing deal with Canada-based Red, White & Bloom Brands (RWB) at $25 million, but most of the transaction will be in RWB stock. The deal is subject to closing and state regulatory approvals.

High Times will receive a minimum cash royalty payment of $10.75 million in the first 18 months of the licensing deal, according to a filing with the U.S. Securities and Exchange Commission.

The California company also will receive $15 million worth of RWB common shares and, subject to certain conditions, might get another $5 million in shares, according to a news release.

In a corporate update Monday, Red White & Bloom, formerly Tidal Royalty Corp., said its Michigan “investee” has 10 operating dispensaries, eight in development and two cultivation facilities.

Toronto-based RWB also has a subsidiary with a 3.6 million-square-foot CBD cultivation facility in Illinois. The company hopes to have a retail presence in Illinois and Florida.

High Times also announced Tuesday it entered definitive agreements to acquire two Northern California cannabis dispensaries in a mostly stock deal that is expected to close within 60 days.

Under new CEO Peter Horvath, High Times is trying to pivot into retail and recently announced an agreement to acquire 13 California dispensaries from Arizona-based multistate operator Harvest Health & Recreation. But a deal to buy California cultivation and processing facilities from Humboldt Heritage recently collapsed.

RWB trades on the Canadian Securities Exchange under the ticker symbol RWB and on the U.S. over-the-counter markets as TDRYD.