CANADIAN PSYCHOTROPIC COMPANY TO PURCHASE HIGH TIMES

Jeremy Bouvet
CANADIAN PSYCHOTROPIC COMPANY TO PURCHASE HIGH TIMES

 

Canadian psychotropic company Lucy Scientific Discovery Inc. is acquiring the intellectual property of cannabis brand High Times.

The deal includes existing licensing agreements for High Times and the Cannabis Cup event, including their respective domain names. High Times will retain cannabis production, sales, and retail. Lucy will license the right to operate retail stores, manufacture and sell THC products in the U.S. back to High Times for a licensing fee of $1 million per year, increasing to $2 million per year upon federal legalization. Lucy will issue 19.9% of its outstanding stock to High Times and make semi-annual payments for the next five years based on EBITDA (earnings before interest, taxes, depreciation, and amortization) generated from the acquired IP.


The transaction is expected to close within two weeks.

High Times CEO Adam Levin expressed enthusiasm over the transaction, stating that while the brand has a new owner, the company expressly does not intend to be the undisputed leader in the cannabis world in the long term. Founded in 1974, High Times has become one of the world's most well-known cannabis brands. In 2020, High Times began acquiring retail dispensaries. Today the brand owns eight retail stores, as well as several cannabis brands.

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