The C$500,000 investment into SpeedWeed’s owner 2083 Group will be used to expand its existing Southern California market reach
Mojave Jane Brands Inc () (OTCMKTS:HHPHF) told investors on Monday that it is increasing its position in cannabis delivery company SpeedWeed to nearly 25%.
The C$500,000 investment into SpeedWeed’s owner, 2083 Group, will be used to expand the delivery company’s existing Southern California market reach, the company told investors.
The investment is also expected to fund 2083 Group’s cannabis marketing, media and celebrity endorsement efforts as it expands its operations.
READ: Mojave Jane Brands closes C$3.2 million financing to fund expansion
SpeedWeed has over 200,000 registered users and an expansive data set on consumer preferences that provides valuable intel on marketing and production logistics.
Mojave Jane is aiming to leverage the data to optimize its go-to-market strategy for its own in-house cannabis brands such as CALIGOLD.
Calling the dispensary market in California “ultra-competitive,” Mojave Jane CEO Gary Latham told shareholders that SpeedWeed enables its dispensary partners to increase reach, grow revenues and improve margins.
“This capital injection enables us to expand SpeedWeed's network, drive revenue growth, and expand into the important Northern Californian market,” Latham said in a statement.
Important partner
Latham said that SpeedWeed is a “vitally important” partner and Mojave Jane already has a large waiting list of new partners looking to sign up.
The partnership helps to address the high taxes and costs that have driven most California cannabis customers to the illicit market, 2083 Group CEO Al Gentile told investors.
“SpeedWeed and its growing network of retailers, combined with Mojave's production capabilities, finally gives consumers access to safe, legal cannabis products that are priced competitively,” Gentile said.
“Being an engineer, I think of SpeedWeed as the software that runs on Mojave Jane's hardware. Together, we're full stack."
Mojave Jane recently closed a C$3.2 million financing to fund strategic acquisitions and expand its delivery footprint.
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