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Chicago-Based Grassroots Cannabis Raises $90M To Expand Operations

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Chicago-Based Grassroots Cannabis Raises $90M To Expand Operations

Multi-state operator Grassroots Cannabis this week announced the completion of its first capital round. The $90 million raised surpassed the $40-million goal of the round that commenced Dec. 3, 2018.

The round funds the company further after already holding a favorable position in the market. With the raise, Grassroots has $165 million in total equity and equity-linked securities raised to date.

Grassroots CEO and co-founder, Mitch Kahn, spoke of a particular milestone from the round: "We believe this capital raise now makes Grassroots the largest privately held cannabis company in the U.S."

See Mitch Kahn and Grassroots EVP Brian Schinderle at the Cannabis Capital Conference In Toronto! Click here to grab your tickets for the April 17-18 event.

"Our growth is a testament to our team's collective strategic vision and execution of building an integrated business model that enhances the communities which we serve," Kahn said in the press release.

What’s Next

Grassroots plans to use the funds raised to support its efforts to scale out its 11-state platform, M&A activity and other growth initiatives. These goals include:

  • Expansion of the company's cultivation facilities in Illinois, Maryland and Pennsylvania in tandem with strong growth the company is experiencing in these markets.
  • Build-out of new dispensary licenses won by the Company in December and January.
  • Funding associated with Grassroots recent strategic partnership with Phyto Science Management Group in Vermont to expand its cultivation and lab capacity, as well as expansion in its CBD derived from hemp business.
  • Additional M&A opportunities targeting both new markets and expansion in existing markets.

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Posted-In: Grassroots Cannabis Mitch KahnCannabis News Financing Markets Best of Benzinga

 

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