Manatt successfully represented two Northern California cannabis dispensaries, Synergy and 530 Cannabis, in their sale to Hightimes Holding Corp. for $10.2 million and $4.4 million, respectively.
Synergy and 530 Cannabis provide high-grade cannabis and a wide variety of cannabis-related products, accessories and merchandise for medical and recreational use, including edibles, tinctures and topicals. Upon closing, the two dispensaries will be rebranded as Hightimes stores. The buyer runs the leading High Times publication, and Synergy and 530 Cannabis’ significant regional presence will greatly contribute to the buyer’s retail expansion. The deal was structured as a reverse triangular merger and the purchase price included a combination of cash and shares of Hightimes.
The Manatt deal team was led by co-leader of the venture capital / emerging companies practice Richard McDerby and entertainment associate Nancy Nan. Other team members included tax partner Robert Duran, venture capital / emerging companies associate Christopher Dayans and land use associate Jennifer Lynch.