What's New: Q3 Cannabis Deals & Funding
Fresh Funding
Your monthly recap on recent early stage funding, M&A, and exits in the cannabis market in North America.
Canadian brand and retailer Burb raises $4MM to expand retail operations in British Columbia and launch products in Ontario and the US.
California-based cannabis brand Pure Beauty raises $5MM to roll out new products and expand into new markets such as Michigan.
California-based cannabis manufacturer and distributor Radiant Canna recently closed an oversubscribed $6 million seed round.
Dispensary management system Dispense closes $2MM seed round by top VCs in and outside of cannabis.
One of the largest online cannabis marketplaces Jane Technology announces $100MM Series C to accelerate their market expansion and product development across the US.
Canadian retailer High Tide Inc. acquires US-based cannabis consumption accessories subscription box company Daily High Club for $10MM to gain access to DHC’s 15,000 subscription members in the US.
Publicly listed multi-state operator (MSO) Columbia Care acquires privately held MSO Green Leaf Medical for $240MM to cement market leading position in the Mid-Atlantic.
Software giant Akerna to acquire ERP solution 365 Cannabis for $17MM to enhance their enterprise resource planning platform, which includes financial and tax compliance software.
California holding co., The Parent Company to acquire Coastal, a retail dispensary and delivery operator to expand its retail network to eleven operating stores and six delivery depots in California, making them the second largest operating retail dispensary and delivery hub in the state.
Michigan dispensary Skymint raises $75MM and announces plans to acquire local competitor 3Fifteen Cannabis in order to broaden their reach across Michigan, allowing them to serve 90% of the adult cannabis users in Michigan, the third-largest market in the US behind California and Colorado.
Must Reads
The most important news worth reading and events worth going to.
The bill establishes a safe harbor for any depository institution that chooses to provide banking services to a cannabis-related business which holds and maintains a license from a state or local government to engage in manufacturing, growing, or producing, as well as any business who handles, sells, transports, displays or distributes cannabis or cannabis products. The latest twist for the SAFE Banking Act, which would provide safe harbor to banks working with cannabis companies, is that it is now in the defense policy bill. Rep. Ed Perlmutter (D-CO) wanted to add the SAFE Banking Act to the defense policy bill that Congress is expected to enact into law this fall. It is one of 812 amendments that were submitted to the House Rules Committee to be included in the defense bill, but most are actually related to national defense. It was approved by the House on a voice vote.
Los Angeles County dismisses 60,000 more cannabis convictions
Los Angeles County District Attorney George Gascón announced today that his office will automatically dismiss nearly 60,000 past cannabis convictions, as part of the ongoing effort to remediate the harm done by the War on Drugs. The Los Angeles County has dismissed a total of roughly 125,000 past cannabis convictions. The expungements come roughly five years after California voters legalized the adult use of marijuana in Nov. 2016.
Global Cannabis Report: Growth & Trends Through 2025
This report by New Frontier Data breaks down trends in both the legal and illicit cannabis markets since 2005. According to the report, sales of high-THC cannabis totaled roughly $24 billion in 2020, with sales forecast to double to over $50 billion by 2025.
Middle Market Investment Bank, R.L. Hulett & Co. produced a report on M&A trends within the cannabis industry. The chart below highlights the increasing amount of transactions in middle-market deals across the industry.
Missed Hall of Flowers in Santa Rosa?
JourneyOne attended the highly coveted two day B2B retail and brand trade show in California. If you missed out, don’t worry. The upcoming Hall of Flowers show in Palm Springs, CA is in December and is just around the corner.
Here’s our top pick reads to catch up on what happened:
Meadowlands (Mendocino, CA) // Sept. 30 - Oct. 3
JourneyOne’s very own Helene Servillon took the main stage at Meadowland’s alongside Arcadian Capital, the International Cannabis Bar Association and Manzuri Law to chat about Financing, Fundraising, and M&A in Cannabis. Stay tuned as we’ll share the recording once available.
Portfolio Updates
The latest Updates from our portfolio companies.
ASK: We’re looking to connect with top California cannabis lobbyists. Give us a ping at investor@journeyone.vc if you have any recommendations.
WUNDER (cannabis beverage) is hiring a Director of Ops.
Leaf Trade (B2B wholesale marketplace) is hiring multiple design, marketing, and engineering roles. Apply here.
Flower Company (Delivery) is hiring a ton roles. Apply here.
J1 Team Spotlight
Each month we spotlight talent from our team and community.
Paige Cecchi has been involved in the industry since 2013 and has a Masters of Science in Medical Cannabis Science and Therapeutics from the University of Maryland. In her most recent role, Paige was a member of the US corporate development and M&A team at TerrAscend. She is an industry expert, strategic advisor and investor driven by the mission to end the stigma surrounding cannabis use.
Connect with Paige on LinkedIn and Twitter.
Founder Resources
Check out our free resources below and the full list on our website here.
The Cannabis Safe: Customized for cannabis businesses and investors, created in collaboration with top cannabis legal teams to incorporate the regulatory nuances of cannabis businesses.
Guide to Seed Fundraising: This guide from Y-Combinator breaks down the seed fundraising process for founders.
Pillar VC Fundraising Guide: Pillar has dozens of fundraising resources for founders on their site ranging from negotiation tactics to VC outreach.
For Kicks & Giggles
A section full of fun.
The Stone Age (New York, NY). The first immersive cannabis experience in New York City will be live from October - November. Check it out to explore an 8 multi-sensory cannabis experience as you travel through The Stone Age’s 9,000 square foot exhibit.