Marley ganja firm seeks cash for acquisitions
Published:Tuesday | July 4, 2017 | 12:00 AMSteven Jackson
Stony Hill Ventures Limited, a US-based private equity firm which invests in ganja ventures, wants to raise more funds amid five deals executed in its first year of operation.
The company, owned by Damian Marley, raised over US$1 million this year to acquire equity stakes in various marijuana companies in the United States and Israel.
"Our ability to continue as a going concern is dependent on our ability to raise additional capital and to ultimately achieve sustainable revenues and income from our operations," said Stony Hill Ventures in its newly released annual report.
"However, we will need and are currently working on obtaining additional funds to operate our business," added the company indicating that options include debt and or dilution of current stockholders allotment.
Stony Hill's senior management include President Chris Bridges, Company Secretary John Brady, and director, Marley.
During its first year of operations, ending March 2017, Stony Hill raised US$1.12 million through subscription agreements in which it sold 937,500 shares to accredited investors. Its 15.25 million common shares are now held by approximately 35 stockholders on record up to June.
Jamaican-born Marley, 38, owns the largest chunk of the company at 20.6 per cent.
As previously disclosed, in May, Stony Hill acquired just under five per cent of High Times Holding Corp, a Delaware corporation which makes the most known magazine on weed called High Times, for US$250,000. The deal was part of a wider deal by a group of investors to fully acquire the High Times holding company.
Also in May, Stony Hill signed a marketing agreement with Colorado company BTE LLC to licence its products under the Damian Marley name. BTE operates a retail cannabis business in Colorado, which it agreed to rename as 'Damian Marley's Stony Hill by Tru Cannabis'.
Rebranding in Oregon
That same month, Stony Hill entered into another marketing agreement with SBR Broadway Retail LLC, to licence the 'Damian Marley's Stony Hill' name to SBR for use in the state of Oregon, where SBR operates a retail cannabis business. SBR also agreed to rebrand its operation as 'Damian Marley's Stony Hill by Tru Cannabis'.
In March, Stony Hill announced the acquisition of under five per cent of Cannabi-Tech Limited of Israel for US$50,000. Cannabi-Tech, provides lab-grade medical cannabis quality control testing systems.
Stony Hill also purchased 80 per cent of the assets of the mCig Inc, a Nevada corporation which makes medical ganja products, with an option to acquire the rest. The deal was valued at US$200,000.
Stony Hill plans to set up a global medical cannabis platform and brand, invest in various segments in the medical marijuana industry, and create franchise-like alliances to sell its products, according to its financial report.
The company, still in its start up phase, generated revenues of US$45,500 and made a net loss of US$517,600 for year ending March 2017.
Stony Hill Ventures is the result of a reverse merger in which the executives took control of a furniture company, which they renamed and repurposed.
The company describes itself as a vertically integrated company with involvement in the consumer, health and wellness, recreational, medical, nutraceutical and cosmeceutical parts of the industry.