LOS ANGELES, Jan. 28, 2020 /PRNewswire/ -- Driven Deliveries (OTC: DRVD) announces today 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.
About Driven:
Driven Deliveries, Inc. is the first publicly traded cannabis delivery service operating within the United States. Founded by experienced technology and cannabis executives, the company provides e-commerce solutions, online sales, and on-demand cannabis delivery in select cities where allowed by law. Driven offers legal cannabis consumers the ability to purchase and receive their marijuana in a fast and convenient manner. By 2020, legitimate cannabis revenue in the U.S. market is projected to hit $23 billion. In leveraging consumer trends, and offering a proprietary, turnkey delivery system to its customers, management believes it is uniquely positioned to serve the needs of the emerging cannabis industry best and capture notable market share within the sector. For more information, please visit www.DRVD.com and review Driven's filings with the U.S. Securities and Exchange Commission.
About Humboldt Heritage Inc.
Humboldt Heritage, Inc., was founded in 2015 by seven local farmers who sought to better serve the farming community in the region. Headquartered in Humboldt County, CA, HHI provides manufacturing, processing and distribution of cannabis products under its two wholly-owned subsidiaries, Humboldt Sun Growers Guild (HSGG) and Grateful 8. HSGG provides processing, white labeling services, and is the exclusive distributor of their flagship brands True Humboldt and Region.
Forward-looking Statements:
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations, and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that we will achieve these plans, objectives, expectations or intentions. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the company's filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Additional information and media assets may be obtained from sb@drvd.com
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SOURCE Driven Deliveries, Inc.
