Multi-state U.S. cannabis company Cresco Labs announced closed its oversubscribed Series D funding round for $100 million making it the second largest private funding round in U.S. cannabis history. Cresco will be able to use these funds to continue expansion into other states and distribute their existing suite of medical cannabis and adult-use cannabis products
“This capital raise demonstrates our commitment to growing our national footprint and establishing dominant brand presence in key markets across the country,” CEO Charlie Bachtell said.
Chicago-based Cresco is located in six states. Its portfolio of brands includes Cresco, Remedi, Reserve and Mindy’s Edibles, an infused edible line with James Beard Award-winning Chef Mindy Segal. The products have been developed in order to address various consumer demands within the cannabis industry.
The flagship brand Cresco is available in Illinois and Pennsylvania, with Ohio, California, and Nevada on deck. Each product falls into one of three proprietary categories: Rise, Refresh, Rest, named and is color-coded to help the consumer identify the desired effects of the relevant strain’s cannabinoid profile. Mindy’s is currently available in Illinois and Nevada with Ohio and California to follow.
Reserve is a premium cannabis product that is sold in Illinois and Pennsylvania. Ohio, California, and Nevada are the next planned markets. Remedi is the medical cannabis product with an emphasis on CBD products. It is currently sold in Illinois and Pennsylvania with Ohio and Nevada to follow.
Cresco was founded after winning three merit-based cultivation licenses in the Illinois market. It has 110,000 square feet of cultivation in three facilities in the state and can yield enough product to service over 50 dispensaries. The company has since garnered more vertically-integrated licenses in Pennsylvania and Ohio. It has a facility located an hour from Pittsburgh and the first sale of medical cannabis occurred in their dispensary. In June, Cresco received a license to operate vertically-integrated dispensaries in the “Buckeye” state.
Cresco Labs purchased an ownership interest in an existing Nevada operation which holds one cultivation, one processing, and one dispensary license located in Las Vegas. It has an ownership interest in an existing Arizona operation which holds a vertically integrated license with cultivation, processing, and one dispensary location near Phoenix. Cresco has partnered with one of the largest indoor commercial farming networks in Central Coast California.
“The financial commitments we secured for this round represent both how appealing the cannabis industry has become to investors and how impressed they are with the direction Cresco is headed,” Bachtell added.