With Rep. Ed Permutter (D., CO) successfully filing an amendment to include SAFE Banking in a mainline Bill called the America Competes Act, the normalization of U.S. cannabis is apace. If passed, the industry would be one giant step closer towards the ultimate goal: outright cannabis legalization. That would be good news for Humble & Fume Inc. (CNSX: HMBL), which has forged partnerships to greatly expand distribution in United States when legally permissible.
But regardless of whether SAFE Banking gets passed, Humble & Fume is not standing still. While it cannot deal in products containing THC or plant touching operations in the U.S., it does distribute peripheral accessories to the retail market. The company is using it as a channel-building opportunity while the drumbeats of legalization grow ever louder.
We’re already active—fairly active in the U.S. right now on the accessories side. You know as more and more dispensaries come onboard, I think there’s something in the range of 9000 dispensaries in the U.S. right now—legal dispensaries. We’re selling already accessories to these individuals and to these retailers and building that relationship with them. In terms of our California and plant-touching operations—the partnership and venture with Johnson Brothers has afforded us is we’re building out the operations right now. We’re hiring key individuals and we’re starting to have partner discussions with brand partners down there.Joel Taguri, CEO of Humble & Fume
Last November, Humble & Fume completed a US$8 million private placement from Green Acre Capital Distribution Corp. In turn, this brought Johnson Brothers into the mix through purchased rights under the First Option from Green Acre. Through First Option terms, Johnson Brothers has the right to acquire the Humble equity once cannabis has been sufficiently federally legalized in the United States.
Johnson Brother is a Top 5 wine, spirits and beer distributor in the United States, with distribution in all states.
With over two decades of operating experience, Humble has already cultivated extensive vendor and customer relationships throughout North America. Once barriers on federal legalization come down, Humble & Fume can leverage its operations into the plant side of the business.
To view our previous interview with Joel Taguri, click here.