High Times Acquires Spannabis for $7+ Million

High Times acquires Spannabis_for $7 million_mg_magazine

LOS ANGELESHightimes Holding Corp., parent company of High Times magazine, has acquired Feria Del Cáñamo S.L., doing business as the trade and consumer conference Spannabis, for U.S. $7 million. The deal includes $3 million cash at closing, $4 million in Hightimes common stock, and two milestone payments for the show in 2020 and 2021.

The deal is the company’s second in as many months, following the acquisition of Buyers Industry Guide and its trade-show component, the bi-annual BIG Show, in December. Hightimes also owns the Cannabis Cup and industry trade event High Times Business Expo, which last took place in 2017. In addition, the company produces Reggae on the River under contract. The Cannabis Cup, which debuted in Amsterdam in 1988, now operates in more than a dozen cities in the U.S., Europe, the Caribbean, and Canada.

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“Spannabis is one of the most prolific events in the cannabis ecosystem and one of the most well-known annual festivals within the EU,” said Hightimes Chief Executive Officer Adam Levin. “This acquisition will provide an additional international platform for our customers looking for additional international exposure opportunities.

“We believe High Times is the most recognizable brand in cannabis across the world,” he added. “You can see our logo proudly displayed from New York to Singapore, and we look forward to creating more access and experiences for consumers no matter where they live.”

Billed as “the European Union’s largest cannabis event,” Spannabis’s part-trade-show, part-research-conference hybrid will return to Barcelona for its sixteenth annual celebration March 15-17. The event, which includes an awards ceremony for regional products, annually attracts tens of thousands of international consumers and industry professionals.

“This deal is a game-changer for Spannabis,” said CEO Carlos Palomino. “We’ve idolized High Times for decades, so to be adopted by this groundbreaking team is nothing short of extraordinary.

“We know the future is bright for cannabis, and for Hightimes, which has been leading this movement since many of us were in diapers,” he added. “We look forward to continuing to push this thriving movement forward together.”

The acquisition occurred during Hightimes’s Regulation A+ crowdfunding campaign, which has raised millions of dollars from more than 17,000 investors around the globe, according to a company statement. Hightimes filed for a NASDAQ initial public offering in late January 2018 at a per-share price of $11, intending to raise $50 million. That effort is on hold.

The Spannabis deal’s closing is subject to customary closing conditions but is expected to close during 2019’s first quarter.

(Image courtesy of Spannabis on Instagram.)

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