has announced it’s raising $10 million Series B financing that’s aimed to help the company keep rolling out its productions and boost the size of its production facilities to more than 100,000 sq. ft.
Canndescent is part of the self-described “cannabis 2.0 charge,” as it looks to bring cannabis into the mainstream in a variety of ways, including luxury and lifestyle marketing. It launched the nation’s first ultra-premium flower brand (The Art of Flower) in California and now ranks as the leading branded flower in the state, according to BDS Analytics.
CEO Adrian Sedin said the financing gives the company validation for its business model and will make it even more competitive in California.
“This round validates our strategy of simplification and sophistication, our effects—Calm, Cruise, Create, Connect, and Charge–and our leading position in California, the nation’s most competitive and largest cannabis market,” Sedlin said.
Sedlin has said previously he wants to make his company “the Hermès of cannabis” and expects to be selling more than $50 million worth by next year, according to a 2017 interview with CNBC
. The company’s Instagram page
reflects this premium lifestyle mentality, akin to that of a luxury retailer more than a weed company.
According to data from Crunchbase
, the company previously raised $6.5 million in 2016, including from Sedlin himself, as well as Floret Ventures.
Stella Kleiman, a managing partner at Floret, said Canndescent has executed its vision extraordinarily quickly, going from concept to market in just 18 months. “They’re executing flawlessly and, in my experience as a long-time technology entrepreneur, are one of the few institutional quality teams touching the plant,” Kleiman said.
John Brecker of Altitude Investment Partners agreed with Kleiman, saying: “Every so often, a VC participates in a ‘fund-maker’ that materially increases the fund IRR and that helps it to raise subsequent funds. I believe Canndescent is such a fund-maker.”
Sedlin added that Canndescent, which produces over 10,000 pounds of cannabis per annum, will bring The Art of Flower to new customers around the country and in different product categories.
In addition, Canndescent said it is opening its second production facility today, which will bring it to 48,000 sq. ft. The company has a goal of getting to more than 100,000 sq. ft, which it hopes it will accomplish with the addition of its third facility, scheduled for later this year.