An active Drug Enforcement Administration (DEA) pharmaceutical cannabis license holder, Biopharmaceutical Research Company completed a $20 million Series A fundraise. BRC said the raise will help it aggressively scale its operations and increase its product offering, conduct sponsored research, and execute its go-to-market strategy.
“Receiving our DEA Schedule I registration in 2021 allowed us to significantly advance our research capabilities, optimize our cannabis growing operation, and produce novel cannabis-derived products in a federally compliant manner. This significant new financial infusion will further accelerate our ability to grow as a business, while establishing BRC as an industry leader,” said George Hodgin, BRC CEO. “Intrinsic not only provides us with the cash we need to scale aggressively, they also bring a wealth of experience in the pharmaceutical space. We’re so grateful to the Intrinsic team and to our other partners for seeing the high-growth potential of our work.”
According to the statement, BRC said that in 2021 it was one of a small number of American companies awarded a production license from the DEA to produce clean, consistent, and compliant cannabinoids for federally approved researchers across the United States. BRC said it has partnered with academic research institutions including Washington State University and the University of California-Davis.
The round was led by Intrinsic Capital Partners, with participation from Argonautic Ventures, Achari Ventures, AFI Capital Partners, Delta Emerald Ventures, Self Health America (SHAC) and a number of preeminent family offices.
“BRC has exactly the kind of high-growth potential our fund looks for in a company,” said Intrinsic Managing Partner Howard Goodwin M.D. “They’re a mission-driven company with excellent leadership in a high-growth industry, and we’re thrilled to have engaged with a business that is already in a significantly advantageous position given their unique ability to be fully compliant with the DEA.”
For years, the University of Mississippi had been the only legal place for cannabis to be grown for the government. However, in May 2021 the DEA opened the program up to other third-party applicants. “Pending final approval, DEA has determined, based on currently available information, that a number of manufacturers’ applications to cultivate marijuana for research needs in the United States appears to be consistent with applicable legal standards and relevant laws. DEA has, therefore, provided a Memorandum of Agreement (MOA) to these manufacturers as the next step in the approval process.”
That sparked several companies to apply for DEA approval. The Scottsdale Research Institute in Arizona received approval in May 2021 and Biopharmaceutical Research Co. in California received approval shortly thereafter. Royal Emerald Pharmaceuticals in California, received approval in December 2021, followed by Groff North America, based in Pennsylvania, in March 2022 and California-based Irvine Labs in April 2022. More recently, Bright Green (NASDAQ: BGXX) stated in its prospectus, “In May 2021, we entered into the MOA with the DEA, which outlines the terms of the DEA’s conditional approval of Bright Green to proceed through the DEA’s registration process, as described above. The MOA with the DEA is effective for a one-year term, renewable for up to four additional one-year terms. These terms are agreed to by both the DEA and BGC, and the MOA is filed under DEA Document Control Number W20078135E. There is no guarantee that we will obtain the necessary authorization now, or in the future for renewal purposes.”