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licenses. Finally, having a thorough understanding of the regulatory framework (both Local and State level) in one of the most ever changing complex markets in the US helps.
CCIM: Your most recent financial statements show little debt. Has that changed?
HC: No not at all we are light on debt. Our structure is tight. We have 10.8 acres in Coachella that is free and clear.
CCIM: Why should investors get excited about your wholly owned 10.8-acre property located in the city of Coachella California?
HC: Well investors should be excited because the property sits in a designated zone for cannabis cultivation that has been approved by the local municipality. This allows us to develop over 185,000 sq. ft. of cannabis closed looped production facility. Currently, we have finished our design and we are going through the application process. We anticipate a conditional use permit within the next 90 days.
CCIM: The Coachella zoned area is for medical only. Is that correct? Does HC have any current or planned intentions to expand into areas zone within the legal recreational market?
HC: Yes, Coachella’s zone is medical but come January 1, 2018 that changes. Currently High Hampton does not have plans in expanding into any legal recreational zones for several reasons. One reason is that certain individuals in the federal government have indicated that cannabis seems to serve a medical purpose versus recreational. Once again this goes in line with our strategy of less risk. Also, I believe that the recreational market can be a race to the bottom and produce a lower quality product. Medical on the other hand will demand a certain level of quality and maintain a higher price that will be specific to certain medical conditions.
CCIM: Succinctly, what is the HC business model and how will stewardship of that business model transfer into shareholder value?
HC: Great question! HC’s model is to be the largest global distributor of the most sought-after cannabis products. We will execute this and create shareholder value by satisfying the capital, compliance, licensing, and management needs of brands and operators within the cannabis sector.