The Connecticut-based cannabis insurance firm works with reinsurers unfamiliar with the highly regulated marijuana landscape. It also provides risk management advising services to the industry.
The company is helmed by James Whitcomb, a former CEO of Parallel, and investors in the new funding round include Euclid VC, Inter-Atlantic Capital Group and lawyer Bruce Macfarlane, Axios reported.
Whitcomb called the rescheduling proposal – which would move marijuana from Schedule 1 to Schedule 3 on the list of federally controlled drugs – a “historic recommendation” but cautioned that it’s not yet a “done deal.”
“The DEA has to accept this recommendation before we see federal rescheduling actually happen,” Whitcomb told Axios. “Rescheduling will remove some financial burdens, unfairly placed on the cannabis industry, naturally freeing-up capital so companies can focus on streamlining, innovating and continuing to grow the industry.”