Gary Latham, CEO of Mojave Jane Brands (CNSX: JANE) (OTC Pink: HHPHF) (FSE: 0HCN) discusses the most recent company developments. Mojave has signed a binding LOI to acquire 100% of CB Asset Management, a fully licensed cannabis operator in Coachella, where Mojave already operates out of today. The acquisition is intended to expand Mojave’s extraction footprint, bringing their capacity from 100 litres to 170 litres a month. In addition, the acquisition grants Mojave 4.5 acres of open property that has been graded, prepped and is ready for building of greenhouses to commence cultivation.
James West: I’m joined now by Gary Latham, CEO of Mojave Jane Brands, trading on the CSE under the symbol JANE. Hey, Gary, welcome back.
Gary Latham: Good morning, James, how are you?
James West: I’m doing really well, thank you. Most recent news that really caught our attention is you signed a binding LOI to acquire 100 percent of CB Asset Management, a fully licensed cannabis operator in Coachella with a 20-year lease on six acres in the Coachella Valley. You can grow a lot of cannabis on six acres, can’t you?
Gary Latham: You can grow a lot on six acres, so this is a great opportunity for us. We’ve got, this is actually the property that Mojave Jane operates out of today. So we share a building with, effectively with our landlord, who is CBAM, and CBAM operates a – well, we operate a CO2 extraction facility; they operate an ethanol extraction facility on the other side of the building.
And then in addition to that, they have about 4.5 acres of open property behind the building that’s all been graded and prepped and ready to drop greenhouses on and start cultivating. So you know, if you remember, James, our strategy has always been to be able to produce the products that the market demands from us, whether it’s flower or extracted products or concentrates or whatever, and then be able to get those out to the market; and we wanted to always have control of our supply chain to be able to do that.
So this acquisition gives us an expanded extraction footprint, adds ethanol processing to our capabilities, ups our capacity from about 100 litres a month to about 170 litres a month, with room to grow. And then also gives us all the space and opportunity we need to cultivate at the level we want to do for feeding that product engine, if you will. So it’s a win for us across the board.
James West: Sure. Now, you changed the name from High Hampton Holdings to Mojave Jane, and what was the reason for that?
Gary Latham: Well, Mojave Jane is really much more representative, in our minds, of a California brand, and we’re firm believers that, you know, what works in California tends to work across the US and beyond, and so we liked the idea of having a brand that was much more closely identified with our California business operations here.
So we tested a handful of different names; we kept coming back to Mojave Jane and all the possibilities of things that we can do with that name, that you’ll be hearing about in the near future, as well. So we’re really excited about it, and we’ve gotten great response to it. And being able to grab the ticker JANE was kind of a plus, as well.
James West: Yeah, for sure. So you’ve got now all these different brands, and I guess with six acres of production, you’re going to be able to produce all your own feedstock for all these different products. Do you see a case where you’re still looking at a situation where your products are more highly demanded than you’re able to supply, or will you be able to keep up with your supply after this transaction closes?
Gary Latham: Well, right now, the demand for extracted products and concentrates far outstrips the industry’s ability to deliver. So we see a lot of demand for compliant distillate and compliant concentrates, and so being able to feed our own engine, so to speak, is what allows us to gain some real economic advantage in this process. But you know, the market will tell us: do we want to expand and add additional extraction capability? Do we want to add, you know BHO process to produce those very refined concentrates, things of that nature.
And the great news about having this six acres is that we have all the licenses and all the space that we need to do all of that stuff in a very, very friendly, cannabis-friendly town of Coachella. So that’s why this property is such a great attraction for us.
James West: Sure. How long till this property is in full production?
Gary Latham: Well, it’s actually producing now. So they are a licensed extractor and they are producing today on their side of the building, so really, the day we close, we begin to start delivering products out of Mojave Jane rather than out of CBAM. And we’ve been posting revenue and doing all the good things that we’ve been aiming towards, here.
James West: You bet. Okay, Gary, that’s a great update. We’ll leave it there for you now; we’re going to see you in California soon with our camera crew. Thanks very much for joining me again today.
Gary Latham: Sounds great. Good to see you again, James.
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