Longtime cannabis and counterculture company High Times last week entered an intellectual property partnership with Canada-based Lucy Scientific. The deal includes all of High Times’ existing licensing agreements, including rights to the High Times magazine, Cannabis Cup, 420.com brands, and respective domain names.
Lucy Scientific Discovery Inc. (NASDAQ: LSDI) is a Vancouver, British Columbia, Canada-based Nasdaq-listed company with holdings and operations in a variety of psychotropic businesses. The company holds a Controlled Drugs and Substances Dealer’s License granted by Health Canada’s Office of Controlled Substances.
Under the deal, Lucy will issue 19.9% of its outstanding stock to High Times and make payments semi-annually for the next five years based on EBITDA generated from the acquired IP. Lucy will license the right to operate retail stores and manufacture and sell THC products in the U.S. back to High Times, in return for a license fee of $1 million per year, increasing to $2 million per year upon federal legalization. The company expects the acquisition of High Times IP to add at least $10 million of revenue and $5 million of EBITDA to its 2024 results.
In a statement, Richard Nanula, CEO and executive chairman at Lucy, said the firm expects the partnership “to drive high margin revenue quickly and sustainably across the cannabis sector around the world.”
“This is a great opportunity to grow the market presence of the nearly 50-year-old High Times brand globally through licensing and online distribution. We are confident that this opportunity can add significant value for our shareholders.” — Nanula in a press release
Adam Levin, executive chairman of High Times, added that “there is no better partner than Lucy” to drive the brand forward.
“This transaction will open up tremendous new opportunities to grow and expand the High Times brand,” he said in a statement.
High Times currently owns eight retail cannabis stores and several retail brands.
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