THC Therapeutics has acquired all of the issued and outstanding ownership interests of The Headquarters Group (THG) in an all-share transaction valued at approximately $11,000,000 and completely satisfied through the issuance of 11,007 thousand shares of newly created Series D Preferred stock. THG, through its founders, has been operating in the cannabis industry since 2001.
Under the transaction, THC Therapeutics, Inc. acquired 100% of The Headquarters Group, Inc., a holding company with a portfolio of companies in genetics, cultivation, extraction, and distribution as well specialty real estate and nutrients for commercial and hobby cannabis growers. THCT and the current operators of THG will assume control of management. The companies acquired under THG have a combined revenue of approximately $4.8 million and include acquired real estate under the deal.
"This collaboration of deep expertise from world class cannabis operations management with over 60 years of combined experience will allow us to maximize efficiencies and generate significant revenue for THCT. The combined Company will serve as a vertically integrated foundation in the Company's focused roll-up strategy to acquire industry leading cannabis companies in the cultivation, manufacturing, distribution and nutrients segments within the regulated cannabis industry," commented Scott Cox, CEO of THC Therapeutics Inc.
"This isn't a starting point, it's a launching pad and a breakthrough transaction that delivers on our team's commitment to building out a fully integrated vertical cannabis platform. It immediately unites several segment leaders into a powerful and flexible player in the legal cannabis market."
The newly combined Company will leverage its united capabilities as an industry leader in the California and Oregon markets. With the acquisition of this Company, THCT has established a foothold and expertise in California and Oregon and not only has the potential to grow established operations and brands, but also to expand these brands into other States throughout the U.S. and international legal markets.
"This kicks off our strategy of acquiring industry leaders in our focused verticals that can grow and expand with the management expertise and the capital we can inject as a public company. The acquisition gives THCT a strong foundation for rapid growth and expansion within the cannabis markets as we continue to build a world-class portfolio of assets within the cannabis sectors," concluded Mr. Cox.
Richard Rowe, CEO of THG added, "The market is in a great place right now. The cannabis market itself is growing, while the industry that supports that market is in a strong consolidation phase. This is a good place to be for a successful business with proven systems and access to capital. We believe now is a great time to partner with someone like Scott and with a platform like THCT. Investment money has driven the market since its inception. Those who could spend the most money the fastest, were often, temporarily, perceived by the market to be the winners. Now the Era of Efficiency has come, moving forward efficiency, more and more, is going to drive values and returns."
For more information:
THC Therapeutics
thct.io/
The Headquarters Group (THG)
headquarters.group/