Humble & Fume Inc. Establishes Joint Venture to Build Leading North American Cannabis Distributor

Rhea-AI Summary

Humble & Fume Inc. (OTCQX: HUMBF) has established a Joint Venture with Green Acre Distribution Corp. to distribute cannabis in the United States, focusing on California. The venture includes an investment of US$8 million by Humble and a US$2 million investment by Green Acre, giving it a 20% interest. Johnson Brothers, a prominent distributor, is funding the Green Acre investment. This venture aims to penetrate the rapidly expanding US cannabis market, projected to double over the next decade as California leads with a market valued at US$4.4 billion.

Positive

• Establishment of a Joint Venture for cannabis distribution enhances market presence.
• Humble's investment of US$8 million signifies strong commitment to growth in the cannabis sector.
• California's cannabis market is expected to double, presenting significant revenue potential.

Negative

• None.

• Humble invests US$8 million into Joint Venture to distribute Cannabis in the United States with an initial focus on California.
• Green Acre Distribution Corp. completes a US$2 million investment to further fund Joint Venture for a 20% interest in the Joint Venture.
• The Joint Venture and its resulting formation agreements are part of the previously announced Private Placement with Green Acre.
• Both Green Acre investments funded by an option agreement with Johnson Brothers, a leading wine, spirits, and beer distributor.

TORONTO, April 25, 2022 /PRNewswire/ - Humble & Fume Inc. (CSE: HMBL) (OTCQX: HUMBF) ("Humble" or the "Company"), a leading North American distributor of cannabis and cannabis accessories, announced today that, further to the Company's press release of November 15, 2021, it has formed HC Solutions Holdings Inc., a Joint Venture ("JV") with Green Acre Capital Distribution Corp. ("Green Acre"), for the purpose of distribution of cannabis throughout the United States, initially focused on accelerating the Company's expansion into cannabis distribution operations in California. Subsequent the formation of the JV, Green Acre completed a US$2 million investment directly in the JV. Green Acre has funded its investment through an option agreement with Johnson Brothers, a leading wine, spirits and beer distributor in the United States. Further information on the JV, Green Acre and Johnson Brothers are set out in the Company's November 15, 2021 press release.

"The additional $2 million investment by Johnson Brothers, funded through their Green Acre option agreement, demonstrates continued support for our US expansion strategy. Humble is excited to launch in the California market, delivering something new to the cannabis brands in that area," said Joel Toguri, Chief Executive Officer of Humble. "We are actively executing on our growth strategy. As our business evolves and expands, we continue to be hyper focused on sustainable profit generation and positive cash flow to deliver long-term shareholder value."

Humble brings a new approach to the sales and distribution market in the California cannabis market. California is currently one of the largest adult-use market globally, worth approximately US$4.4 billion and expected to double over the next 10 years¹. With over 6,000 cultivators and over 700 retailers Humble believes that cannabis brands are looking for a new and innovative ways to support ambitious sales targets and build strong retail relationships and brand awareness directly with consumers².

¹ Source: BDS Analytics
² Source: Bureau of Cannabis Control

About Humble & Fume Inc.

Humble & Fume Inc. is a leading North American distributor of cannabis and cannabis accessories, supported by a customer-centric sales team and strong fulfillment infrastructure. As the only fully integrated cannabis distribution solution, Humble bridges the gap for retailers, licensed cannabis producers, multi-state operators, and cannabis consumers to maximize sales penetration, and increase financial performance. With over 20 years of North American operating experience, Humble has cultivated extensive vendor and customer relationships, distributing premium cannabis consumables and consumption devices. The Company is comprised of four subsidiaries that represents its vertical integration across North America; B.O.B. Headquarters Inc. / Humble+Fume, Windship Trading LLC, Humble Cannabis Solutions and Fume Labs Inc.

Forward-Looking Information and Statements

This news release contains "forward-looking information" within the meaning of applicable securities laws relating to, the Company's assessment of the cannabis market in United States generally and specifically, the state of California, and the expected results for brand partners of the Company. Any such forward-looking statements may be identified by words such as "expects", "anticipates", "intends", "contemplates", "believes", "projects", "plans" and similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements. Statements about, among other things, the potential for Johnson Brothers, through Green Acre, to increase its ownership percentage in the JV, the potential impact on brands that engage Humble for their distribution and / or sales agency and the future of the cannabis industry in California and across the United States, including the anticipated ongoing consumer demand, are all forward-looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions, there can be no assurance that such forward-looking statements will occur as described herein. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances or actual results unless required by applicable law. Readers are encouraged to refer to the Company's disclosure available on its SEDAR profile (at www.sedar.com) for information as to the risks and other factors which may effect the Company's business objectives and strategic plans.

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SOURCE Humble & Fume Inc.

FAQ

What is Humble & Fume Inc.'s new investment in cannabis distribution?

Humble & Fume Inc. has invested US$8 million in a Joint Venture with Green Acre Distribution Corp. to distribute cannabis in the United States.

How much investment has Green Acre made in the Joint Venture?

Green Acre Distribution Corp. has made a US$2 million investment to acquire a 20% interest in the Joint Venture.

What are the main goals of the Joint Venture formed by Humble & Fume Inc.?

The Joint Venture aims to enhance cannabis distribution operations primarily in California, which is a key market in the United States.

What is the current value of the California cannabis market?

The California cannabis market is currently valued at approximately US$4.4 billion.

What strategic advantages does the Joint Venture provide for Humble & Fume Inc.?

The Joint Venture allows Humble to accelerate its expansion into the cannabis distribution sector, capitalizing on the growth potential in California.