Hempacco Expands Its Footprint with Acquisition of MJAC Vending
Hempacco (NASDAQ: HPCO) has announced the acquisition of assets from Simtech, MJAC Vending, and Bear Air. The deal includes 120 Nayxs vending machines, with 77 active booth placements and Disney-branded kiosks. The acquisition will lead to the rebranding of Hempacco's subsidiary, Hempbox Vending, as 'Celebrity Vending,' which will own at least 100 vending machine kiosks. Celebrity Vending will also sell Hempacco's celebrity-branded and Disney-branded products and have VDL tribe approval for casinos. Post-acquisition, David Simchon will be appointed CEO of Celebrity Vending. Both Hempacco CEO Sandro Piancone and Simtech CEO David Simchon highlighted the growth and innovation potential from this partnership.
- Acquired 120 Nayxs and vending machines with 77 active booth placements.
- Rebranding of Hempbox Vending to 'Celebrity Vending' with at least 100 vending machine kiosks.
- Licenses to sell celebrity-branded and Disney-branded products.
- VDL tribe approval for casino sales.
- Appointment of David Simchon as CEO of Celebrity Vending.
- None.
The acquisition of assets from Simtech, MJAC Vending and Bear Air is a strategic move for Hempacco. Firstly, the significant number of vending machines (120 Nayxs and over 77 active booth placements) is expected to enhance Hempacco's distribution capabilities. This can directly lead to increased market penetration and revenue stream diversification.
Rebranding Hempbox Vending to Celebrity Vending can give a fresh brand identity and attract consumers, particularly given the involvement of celebrity-branded and Disney-branded products. Such branding can create a unique value proposition and potentially higher sales. Furthermore, the license to sell at casinos (VDL tribe approval) provides access to a niche market with high foot traffic, potentially increasing the company's sales.
However, investors should also consider the integration risks associated with the acquisition. Aligning operations, transferring assets and managing new staff can be challenging and could impact short-term profitability.
In the short term, the acquisition may incur costs related to rebranding and integration, potentially affecting the company's financials. In the long term, if managed effectively, this acquisition could strengthen Hempacco's market position and expand its revenue streams.
Hempacco's move into vending machines with the acquisition of these assets taps into the growing trend of automated retail. Vending machines offer low overhead costs compared to traditional retail outlets and provide convenience to consumers, which is particularly attractive in high-traffic areas like casinos.
The inclusion of Disney-branded kiosks and celebrity-branded products aligns with popular consumer trends that favor recognizable and trusted brands. This could draw in a broader customer base and boost sales volumes.
However, the vending market is also competitive and the success of this venture will depend on how well Hempacco can differentiate itself from competitors. It will be important to monitor how well the Celebrity Vending brand is received by the market and whether it can live up to the brand promises.
Overall, while the acquisition provides several potential benefits, including brand diversification and market penetration, it remains to be seen how effectively these assets are utilized in practice.
The agreement highlights several legal considerations. The VDL tribe approval for casinos is particularly noteworthy as it indicates compliance with regulatory requirements, which is important for operating in such controlled environments. Hempacco's ability to secure this shows that they are navigating legal frameworks effectively.
The appointment of David Simchon as CEO of Celebrity Vending ensures continuity and may facilitate a smoother transition in leadership, which can mitigate potential disruptions in operations. However, it will be important for investors to observe any legal challenges or disputes that may arise during the asset transfer process. Ensuring that all contractual obligations are met without legal hiccups will be vital for the successful integration of these assets.
Moreover, the use of Disney-branded products likely involves licensing agreements, which need to be carefully managed to avoid any infringement issues or contractual breaches.
Hempacco Acquires Assets of Simtech, MJAC Vending, and Bear Air, Paving the Way for Innovative Vending Solutions and Broader Product Offerings
San Diego, California--(Newsfile Corp. - July 8, 2024) - Hempacco Co, Inc. (NASDAQ: HPCO) ("Hempacco"), a renowned innovator in functional product manufacturing and development, is excited to announce the acquisition of certain assets from Simtech LLC, MJAC Vending LLC, and Bear Air, LLC.
The agreement, signed by Hempacco's CEO, Sandro Piancone, and David Simchon, Chief Executive Officer of Simtech LLC, delineates the following terms of the acquisition.
Agreement Highlights:
- Parties: Hempacco and Simtech LLC, MJAC Vending LLC, and Bear Air, LLC.
- Assets: The acquisition includes 120 Nayxs and vending machines with over 77 active booth placements and any Disney-branded kiosks owned by Simtech.
- Hempacco's Contribution: Hempacco's subsidiary, Hempbox Vending, Inc., will be rebranded as "Celebrity Vending" and will own at least 100 vending machine kiosks.
- Post-Acquisition Operations: Celebrity Vending will have licenses to sell Hempacco's celebrity-branded and Disney-branded products and VDL tribe approval for casinos.
- Employment: David Simchon will be appointed as CEO of Celebrity Vending post-closing.
Sandro Piancone, CEO of Hempacco, expressed enthusiasm about the partnership, stating, "This agreement marks a significant step towards expanding our market presence and diversifying our product offerings."
David Simchon, CEO of Simtech LLC, shared similar sentiments, stating, "We believe this collaboration with Hempacco will unlock new opportunities for growth and innovation in the vending industry."
Hempaco Expands Vending Machine Business
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About Hempacco
Hempacco Co., Inc.'s goal is Disrupting Tobacco's™ nearly
Hempacco is a majority-owned subsidiary of Green Globe International Inc. (OTC Pink: GGII), a fast-moving consumer goods incubating company.
Hempacco's operating segments include:
- D9 and Mushroom Beverages and shots R&D and manufacturing
- Manufacturing of vapes, hemp smokables, and hemp rolling paper
- Manufacturing of cosmetics and nutraceutical products
- The Real Stuff™ brand of functional smokables and rolling paper
- Functional Mushroom product development using patented solubility technology
- Celebrity-branded gummies and smokable products from Rick Ross, Cheech & Chong, and Snoop Dogg.
Learn more at www.hempacco.com
Learn more at www.ggiigroup.com
About Simtech, LLC
Simtech LLC is a leading vending solutions provider specializing in innovative technologies and strategic partnerships. Simtech is committed to delivering exceptional value to its customers through cutting-edge vending solutions and unparalleled service.
About MJAC Vending, LLC:
MJAC Vending LLC is a subsidiary of Simtech LLC, focused on expanding vending operations in key markets.
About Bear Air, LLC:
Bear Air, LLC is a subsidiary of Simtech LLC, providing aviation services tailored to clients' needs in various industries.
For investor inquiries, please contact:
Sandro Piancone, CEO
Investor Relations: ir@hempaccoinc.com
619-779-0715
Safe Harbor Statement
This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including our financial performance and projections, revenue and earnings growth, and business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," or "hopes" or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: (i) potential failure to meet projected development and related targets; (ii) changes in applicable laws or regulations that may impact our products and business; (iii) the effect of the COVID-19 pandemic on the Company and its current or intended markets; and (iv) other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the Securities and Exchange Commission (the "SEC ") by the Company. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release, and other statements made from time to time by us or our representatives might not occur.
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FAQ
What assets did Hempacco (HPCO) acquire from Simtech, MJAC Vending, and Bear Air?
What changes will occur to Hempacco's subsidiary after the acquisition?
What new products will Celebrity Vending sell after the acquisition?
Who will be the CEO of Celebrity Vending post-acquisition?
What is the significance of VDL tribe approval for Celebrity Vending?
