High Sierra Technologies, Inc. (HSTI) is a public company focusing on the cannabis and hemp industry. Our long-term goal is to license our intellectual property to key players in the tobacco industry who want to expand into the cannabis and hemp market spaces. Moreover, our patented and patent pending products and processes position our company to take advantage of a very lucrative and rapidly expanding market.
The HSTI Advantage
Our intellectual property covers the product, the process whereby we produce our product and any other products created using our product.
- Marijuana and hemp products that do not have the pungent odor associated with smoking hemp or marijuana.
- Any product made with the first product, such as menthol flavored cannabis. This potentially is huge because menthol cigarettes are 30% of all tobacco sales and the only flavored form of tobacco currently approved by the FDA.
- Our intellectual property covers the actual plant material for smoking. It does not cover the vaping or e-cigarette space. For this reason, we acknowledge that our company will be a prime acquisition target for big tobacco. Given that tobacco companies’ primary focus is making cigarettes, we feel it is highly likely that, in the future, you will be able to buy a pack of marijuana cigarettes. Therefore, if you buy the ones that are flavored or the characteristic marijuana smell has been removed, you will be buying products made using our intellectual property.
Why is this a big deal? Because even when it’s legal, not everyone who uses the product wants to smell like marijuana. They don’t want their clothes to smell like it and they don’t want their cars smelling like it either – for obvious reasons.
Our intellectual property also covers hemp for smoking, which is becoming a popular alternative to tobacco cigarettes, especially for those who have tried quitting tobacco unsuccessfully with nicotine patches.
What if Marijuana Isn't Legalized Immediately?
What if marijuana isn’t legalized at the federal level in the short term? This won’t adversely affect our company because our patented and patent-pending products and processes can easily be licensed to the producers of these products and licensing is not subject to intra-state restrictions.
In summary, we enjoy a significant advantage over our competition for the following reasons:
- By licensing our intellectual property, we are not subject to banking issues or interstate transportation restrictions like dispensaries.
- Every cannabis producer in this country, Canada and Europe will be a potential client.
Our Head Start
Ultimately, when marijuana becomes legalized at the federal level, as is generally believed will happen, the major players in the cigarette tobacco space, like Altria (NYSE: MO) and Reynolds American (NYSE: RAI) will likely start buying up all the small producers and control the market.
They are already buying up cannabis ventures in Canada (we have filed our patent applications there too). Therefore, our company will be a prime buyout candidate
With respect to our company as an acquisition target, Atria recently purchased a 35% stake in an e-cigarette company for $38 billion and e-cigarettes are falling out of favor, which that puts us in a very good position considering our technology is specific for smokable plant material.
At this point, newcomers to the “marijuana gold rush” are at a significant disadvantage. Startups without a unique competitive advantage will have a hard time. Investing in our company allows you into this market without the startup headaches and is potentially the biggest deal on the street.
Legal Protection / Risk
Because we’re licensing intellectual property, our company sidesteps many potential legal issues. We will be able to work across state lines. We can use established banking systems and there is no risk that the Federal regulatory agencies will shut us down. They would have to shut down the entire industry in order to affect us.
Although our some of our patent applications are still pending, we have endeavored to mitigate our risk, by retaining Oliff PLC, in Washington DC, one of the top IP law firms in the country, to prosecute our full utility patent applications, so we are confident in our patent protection. We have already received United States Patent Nos. 10,737,198 and 10,835,839. Once the remaining utility patent applications are issued our company will be secure in its ability to control a major part of the $10 billion marijuana industry.
Business Model / Development
- We anticipate that approximately three months after completing our private placement, we will expand our production capabilities for producing low odor and flavored smokable hemp. We will also expand our licensing efforts targeting the cannabis industry for the production of low odor, recreational and medical cannabis.
- Our team includes scientists and seasoned business people. Our marketing expertise and unique technology give us a competitive advantage. For instance, one of the issues in the hemp processing industry is how to remove the residual THC. We are currently developing technology that will convert the residual THC to another cannabinoid, CBN, which is quite valuable.
Public Company / Transparency
Unlike many cannabis startups, this business is already an existing and fully reporting public company. Our short-term goal is to raise $3 million at $1.50 per share, through a private placement, only to accredited investors. This will finance the infrastructure for our manufacturing hemp cigarettes and the continued prosecution of our remaining United States patent applications, our Canadian patent application and our European Patent Office application.
Once we achieve sufficient revenue, we will make a secondary offering of $8 million which is the next step to qualify for a NASDAQ listing. The final step is for our stock to trade at $4 per share. Our President, Dr. Lombardi, was an investment banker and a securities trader prior to becoming a scientist. He is all about building the public company to increase value for the shareholders and this is our business vision.