Highmark Marketing Aiming to Stamp Name in Marijuana Industry with Purchase of Mobiweed

The medical marijuana industry has so much potential for growth it’s really quite unimaginable.

Many, many areas of horizontal and vertical expansion are readily available for motivated upstarts to quickly take a spot and steadily grow their presence as the whole industry begins to unfold over the next few years. Pot stocks exploded early in the year, but have chilled out some, while most hold the majority of gains, as investors wait for the next great catalyst to initiate another wave of bullishness and buying.

Again, what’s interesting is the multitude of opportunities in the chain from seed to sale and which areas investors are paying attention to for opportunities. Many companies in North America are beating down the path to gain a vaunted grower or dispensary license, while others are looking at pharmaceuticals, others into ancillary components, albeit tracking, consultation, security or even mapping services, such as the entry into the market by Highmark Marketing, Inc. (CSE:HMK).

Those who aren’t in an area where marijuana is legal, whether medicinal or recreational, may not understand the importance or growth possibility of mapping services, but it’s tremendous to say the least. Think of it in the simple sense of a person not feeling well and needing to know where the nearest doctor is that treats the particular ailment – or in places like Colorado or Washington, where to find some recreational pot. Now, combine a site that has physician and product reviews that utilizes location technologies to give you all the information that you need to perform some due diligence and select a nearby doctor, pharmacy or dispensary.

Then, mix in industry news, product reviews and coupons. That’s pretty handy. It is sort of an Angie’s List (NASDAQ:ANGI) meets Groupon (NYSE:GRPN) meets WebMD (NASDAQ:WBMD) meets Google (NASDAQ:GOOGL).

Highmark coming to the public marketplace at the start of June has been followed by the news that the company has signed a letter of intent with Intelliserve Software Inc. to acquire Intelliserve’s website Mobiweed and related assets. The website comes with two primary domains, www.Mobiweed.com and www.Mobiweed.ca. A quick check of the website shows advertising is already a part of the business model, with links in the banner ad to WhereIsTheWeed.At, a website that seems to be under the umbrella of Colorado dispensary company Pinkhouse Blooms.

Highmark has paid Intelliserve a standstill provision of $15,000 to not enter into any discussions with anyone else while Highmark completes its due diligence over the next 90 days in preparation for the next step into a binding agreement. As it stands now, Highmark and Intelliserve have agreed to an acquisition price of approximately between C$187,500 and C$325,000 for the web property and associated assets, assuming the $15,000 provision is added into the overall cost and not factored later as a deposit. This would be paid in the form of the C$15,000 already given, C$35,000 in additional cash, 250,000 common shares of Highmark (currently valued at C$137,500) upon the execution of a definitive agreement with another 250,000 shares due upon meeting certain performance milestones.

In addition to the aforementioned features, the Mobiweed website allows pharmacies and dispensaries to create and manage their own profiles to engage and educate site visitors on the benefits of the marijuana products that they offer. Highmark believes that Mobiweed can become the go-to website (and although not mentioned, likely an app too in the future) for marijuana education and information for new and existing users. With only a $6.6 million capitalization, Highmark is arguable undervalued compared to industry peers if the transaction is completed. Proper due diligence of the newly-listed company is, as always, encouraged.