Lucy Scientific Discoveries Inc Acquires Iconic Cannabis Publication, High Times
Lucy Scientific Discovery, Inc. (Nasdaq: LSDI) will acquire the leading cannabis industry publication High Times in an all-stock transaction. Under terms of the agreement, Lucy Scientific will acquire High Times and the international and domestic rights to its associated Cannabis Cup, and 420.com brands, and their respective domain names.
Lucy Scientific expects the transaction and the 18 licensing agreements across various product categories it will acquire, to add at least $10M of revenue and $5M of EBITDA to its 2024 results and provide a solid foundation of growth as cannabis becomes legal around the world.The transaction is expected to close within the next two weeks.
Richard Nanula, CEO and Executive Chairman at Lucy Scientific, said, “Lucy expects this acquisition 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.”
- The acquisition establishes a pathway for a stream of high-margin licensing and royalty and income for Lucy Scientific while ensuring liquidity for High Times shareholders.
- Under the agreement, Lucy Scientific will issue 19.9% of its outstanding stock to High Times and make payments semi-annually for the next 5 years based on EBITDA generated from the acquired IP.
- Lucy Scientific intends to preserve the essence of the High Times, Cannabis Cup, and 420.com brands while identifying new avenues for growth and development.
- As part of the transaction, Lucy Scientific will license the right to operate retail stores and manufacture and sell THC products in the United States back to High Times, in return for a license fee of $1.0M per year, increasing to $2.0M per year upon Federal legalization.
- The High Times brand is the most iconic and recognizable brand in cannabis.
About Lucy Scientific
Lucy Scientific Discovery Inc. is a 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. Lucy Scientific Discovery Inc. and its wholly-owned subsidiary, LSDI Manufacturing Inc., operate under Part J of the Food and Drug Regulations promulgated under the Food and Drugs Act (Canada). This specialized license authorizes LSDI to develop, sell, deliver, and manufacture pharmaceutical-grade active pharmaceutical ingredients (APIs) used in controlled substances and their raw material precursors. With a focus on pioneering innovative therapies for patients in need, Lucy Scientific Discovery Inc. is dedicated to advancing the understanding and applications of psychotropic medicines, improving mental health outcomes, and enhancing well-being for individuals worldwide.