Humble & Fume Closes Key Private Placement That Will Drive U.S. Expansion Plans
Humble & Fume (CNSX: HMBL) is considered a leading North American distributor of cannabis and cannabis accessories for a reason. This became even more apparent this week as the company completed a US$8 million private placement from Green Acre Capital Distribution Corp., which intends to establish the joint venture which will engage in the business of cannabis distribution in the United States—initially in California. We interviewed Humble & Fume CEO Joel Toguri to explain what the private placement and subsequent expansion plans to the U.S. means for investors.
As a fully-integrated cannabis distribution solution, Humble bridges the gap for retailers, licensed cannabis producers, multi-state operators, and cannabis consumers to maximize product penetration on retail channels. With over 20 years of North American operating experience, Humble has cultivated extensive vendor and customer relationships, distributing premium cannabis consumables and consumption devices. The company is comprised of four subsidiaries that represents its vertical integration across North America: B.O.B. Headquarters Inc. /Humble+Fume , Windship Trading LLC , Humble+ Cannabis Solutions and Fume Labs Inc .
Related to the private placement, the deal brings in Johnson Brothers—a leading wine, spirits, and beer distributor—into the mix. Pursuant to the terms of the First Option, Johnson Brothers has the right to acquire the Humble Equity for nominal consideration once cannabis has been sufficiently federally legalized in the United States. This partnership would be roughly akin to the Constellation Brands-Canopy Growth partnership forged before Canadian leglalization, although on a more modest scale.
Speaking on the benefits of the deal, CEO Joel Taguri acquires a license for distribution in California, which should be the beach head of the company’s U.S. expansion plans:
This is a transformative announcement for the industry, and one of the first of its kind. So, it’s really exciting for us. What it does is we’ve acquired a license for distribution in California. We have a facility we’re working on. And right now, we’re building and talking to brands out there and building our infrastructure. But this allows us to really leapfrog ahead and get that thing up & going in six months.
Click on the embedded link to watch our inaugural interview with Humble & Fume CEO, Joel Taguri.
To view our inaugural interview with Executive Chairman Shawn Dym, click here.