LOS ANGELES, Jan. 28, 2020 /PRNewswire/ — PRESS RELEASE — Driven Deliveries has announced the company’s letter of intention (LOI) to purchase Northern California-based legacy cannabis distribution company, Humboldt Heritage Inc. (HHI), and its subsidiaries, Humboldt Sun Growers Guild LLC (HSGG) and Grateful Eight LLC (G8). The acquisition will galvanize a powerful, synergistic alliance between the two California-based cannabis companies, resulting in California’s largest farm-to-consumer, vertically-integrated operator. The acquisition is expected to an additional $20M to the company’s 2020 revenue forecast.
In addition to adding to DRVD’s topline revenue from HHI’s current distribution operations, DRVD and its Ganjarunner delivery service will gain exclusive access to 18 unique brands including Cuba Libre, Lost Creek, Rambling Rose and Humboldt Edge Farms.
Moreover, Driven’s customer base will have access to products from more than 200 famed Humboldt farms. By leveraging the fully integrated supply chain, DRVD anticipates a gross margin improvement of over 13% for vertically-produced products. Additionally, by leveraging economies of scale through the combined entities, DRVD expects a gross margin improvement of over 6% from products and materials purchased in bulk.
Further, Driven intends to leverage the brands the Humboldt Sun Growers Guild services, including its in-house brand, True Humboldt, family-run Sunrise Mountain Farms, and women-owned Juniper into its Ganjarunner delivery service.
“Driven looks forward to bringing Humboldt Heritage and the Humboldt Sun Growers Guild into our company portfolio,” says Christian Schenk, CEO of Driven Deliveries. “As a vertically integrated cannabis company complete with 90 minute delivery to 92% of California, distribution was the only missing piece to our portfolio puzzle. There is no better cannabis on the market today that can match the quality and consistency produced by the Humboldt Sun Growers Guild. This acquisition brings not only DRVD, but also California’s cannabis consumers closer to the multi-generational, heritage farmers growing cannabis in the world-renowned Emerald Triangle.”
DRVD intends to combine Humboldt Heritage’s distribution network with its delivery network to streamline operations for optimal efficiency.
“Humboldt County arguably produces some of the best cannabis in the world and Driven is honored and humbled that the Humboldt Sungrowers Guild chose to partner with our company. We intend to uphold its time-honored legacy and do right by all of our family farmers, as we welcome them to the extended family of Driven and Ganjarunner,” says Brian Hayek, president of Driven.
“We are extremely excited to be teaming up with the Driven family. Driven’s ‘last mile’ delivery capabilities will enable the Humboldt Sun Growers Guild’s farmers’ world-renowned cannabis products to be delivered direct to over 30 million of California’s cannabis consumers. Our shared vision is to provide and maintain a strong, consistent supply chain that provides the highest-quality products in the industry, which allows our regional cultivators and producers access to a larger consumer market through the use of Driven’s advanced online digital menus, Weedwaves app, and delivery platforms,” says Barry Nachshon, CEO of Humboldt Heritage Inc.
Published at Tue, 28 Jan 2020 22:23:00 +0000