Rocky Mountain High Brands, Inc. has acquired a commercial bottling operation in Plano, Texas through its new wholly owned subsidiary, Rocky Mountain Productions, Inc.
The facility, previously owned by Raw Pharma, LLC, has a peak production capacity for:
- Beverages of 12,000 cans per hour
- High-speed production line of 9,000 bottles per hour
- Second high-speed line of 4,000 bottles per hour (offline at time of purchase; to be brought online as soon as possible)
The high-speed production line has been converted into a hand sanitizer filling line due to the recent demand for hand sanitizer. Additional production shifts have also been added to meet the demand.
“This acquisition gives us the opportunity to enter the highly lucrative hand sanitizer business at a time when it is in great demand,” said Michael Welch, chairman of the board. “Owning our own bottling and canning facility allows us to maintain total control over product quality and development, as well as ensuring favorable production scheduling for our HEMPd and private label beverages at significant cost advantages. We now have revenue producing assets which will allow us to drive our own success.”
Rocky Mountain Productions, Inc. made an upfront payment of $500,000 in RMHB shares of common stock and will make monthly payments toward machine debt of $1 million, as well as a series of additional payments totaling up to $1.75 million with payments beginning in May 2020 and ending no later than 2021, commensurate with the development of the revenue stream.
The acquisition was ratified by the Board of Directors on Monday, May 4 and was announced publicly through a Form 8-K filing with the Securities and Exchange Commission on Friday, May 8.