Canndescent Archives - Green Market Report

William SumnerWilliam SumnerSeptember 10, 2019
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4min1270

It’s time for your Daily Hit of cannabis financial news for September 10, 2019.

On the Site

Canndescent

Private premium cannabis company Canndescent announced that it closes on a $27.5 million in Series C Preferred Funding. Leading the investment round, Green Acre Capital, a cannabis-specific venture fund from Canada, was joined by Carnegie Arch Capital, Senterra, LLC., Altitude Investment Management, JW Asset Management and a multinational beer company from Asia. The money will be used for the company’s expansion into vapes and ingestibles as well as supporting efforts in Massachusetts, Nevada, Canada and beyond.

Dissect the Economics of Cannabis Branding at the Green Market Summit

On September 11th, 2019, investors, entrepreneurs, and branding experts will gather to dissect the economics of cannabis business brands at The Green Market Summit in Los Angeles, California. Following a sold-out event in Chicago, The Green Market Summit will bring its business acumen to the world of cannabis branding and provide exclusive industry information on topics such as the celebrity effect on cannabis, how to manage brand perception for public companies, and the world of luxury cannabis.

In Other News

MedMen

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) announced that the waiting period stipulated by the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended has expired in relation to the company’s proposes acquisition of PharmaCann LLC. The waiting period was one of several conditions needs to close the acquisition, and the deal is expected to close by the end of 2019. “Today marks a monumental day for the cannabis industry,” said Adam Bierman, MedMen co-founder and CEO. “We hope this will pave the way for other companies in what has become a highly acquisitive and dynamic industry.”

Sunniva

Sunniva Inc. (CSE: SNN) announced that it has entered into an agreement to sell its subsidiary Natural Health Services, Ltd.  (NHS) to The Clinic Network Canada, Inc. (TCNC) for C$9 million. Half of the purchase price will be paid in cash, while the other half will be paid through the issuance of 4.5 million shares of TCNC. The closing of the sale could not have come at a better time for Sunniva, as yesterday,  NHS was named in a class action lawsuit in connection with a previously reported privacy breach of the Electronic Medical Record system used by NHS.


Debra BorchardtDebra BorchardtSeptember 10, 2019
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2min2790

Private premium cannabis company Canndescent announced that it closes on a $27.5 million in Series C Preferred Funding. Leading the investment round, Green Acre Capital, a cannabis-specific venture fund from Canada, was joined by Carnegie Arch Capital, Senterra, LLC., Altitude Investment Management, JW Asset Management and a multinational beer company from Asia.

The money will be used for the company’s expansion into vapes and ingestibles as well as supporting efforts in Massachusetts, Nevada, Canada and beyond. The California-based cannabis-centric CPG company said it will also deepen its investments in both of its brands – Canndescent in the ultra-premium segment, and goodbrands in the middle market.

“The institutional investment community recognizes our attractive risk-reward profile and continues to validate our strategy of driving growth through more brands, products and geographic markets,” said Adrian Sedlin, Canndescent’s CEO. Sedlin continued, “Executing to plan, we just broke our previous revenue record last month by 38% and will drive to profitability in 2020.”

Given its proven management team, brands and growth record in California, we’ve made Canndescent an anchor investment for our second fund,” said Tyler Stuart, Managing Director of Green Acre Capital. “Canndescent’s exceptional products, execution and forward-thinking leadership will definitely earn it a significant stake in the future of the cannabis industry.”


William SumnerWilliam SumnerJune 18, 2019
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5min13220

The world of cannabis is becoming more refined. When California first legalized medical cannabis in 1996, the only way one could purchase cannabis legally was through darkly-lit dispensaries with bars on the windows that were squirreled away in industrial parks. More than two decades later, the cannabis industry has evolved to a point where its consumers are more sophisticated and discerning, giving rise to a new sub-market within the industry: Luxury Cannabis.

With a growing number of cannabis consumers willing to pay top dollar for the ultimate cannabis experience, brands are more than happy to provide it for them. Just last month, the cannabis brand A GOLDEN STATE launched what may be the most expensive cannabis flower on the market.

Grown in the Cascade Mountains of Northern California and watered with the snowmelt from Mount Shasta, A GOLDEN STATE aims to provide a luxury experience that is distinctly inspired by Californian heritage; sporting names like Shasta Bloom, Sierra Lemon, and Mountain Shadows.

Even in the most expensive cannabis states, like Nevada, cannabis flower will sell on average for between $11 and $14 per gram. A GOLDEN STATE’s cannabis flower, on the other hand, sells for around $22 per gram. While paying $22 per gram is enough to make most cost-conscious cannabis consumers twitch, there is decidedly a market for such products.

To put this in perspective, dispensaries tend to sell an eighth of an ounce which is about 3.5 grams. So instead of paying $38.50 plus tax for the smallest portion, the consumer is spending $77 plus tax. As of March 2019, Headset Analytics data said that the average dispensary basket sizes by state were: CA $68.70, NV $62.11, CO $59.45, WA $31.16. These baskets tend to have 2 to 2.4 products in them. That means that the luxury consumer is spending twice as much to get less product both of which will have ultiately the same effect.

Earlier this year, the luxury specialty retailer Barneys New York partnered with the high-end cannabis brand Beboe to launch a luxury cannabis lifestyle and wellness concept shop called The High End.

“Many of our customers have made cannabis a part of their lifestyle, and The High End caters to their needs with extraordinary products and service they experience in every facet of Barneys New York,” proclaimed Daniella Vitale, the President and CEO of Barneys New York.

Retailers and brands are not the only ones noticing the market for luxury cannabis; investors are too. This week the luxury cannabis chocolate brand Coda Signature California closed on a $24.4 million Series A funding. Offering a variety of branded premium cannabis-infused edibles, topicals and concentrates, Coda will use the funds to accelerate its expansion into North American markets.

Another luxury cannabis brand eyeing aggressive expansions is Canndescent. The company recently announced that it is spending $25.8 million to acquire buildings and operating licenses in Nevada, Michigan, and Massachusetts; making it one of the first California brands to expand eastward into outside markets.

At one point in time, cannabis had been a substance that was eschewed by high society and wealth, but that is no longer the case. Despite the disconnect between state and federal law, cannabis has gone mainstream, and with it comes the allure of luxury and the desire to have the very best cannabis has to offer. As the industry marches towards the inevitability of federal legalization, luxury brands like A GOLDEN STATE will become less of an exception and more the norm.

 


William SumnerWilliam SumnerJune 13, 2019
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6min3850

It’s time for your Daily Hit of cannabis financial news for June 13, 2019.

On the Site

Cannabis’ Black Market Continues to Thrive Amidst Continued Legalization

Despite legalization continuing to spread, and efforts advocating towards federal legalization of cannabis, the black market in the U.S. for cannabis continues to thrive across the nation.Simply put, despite access and legal product being available, people are still as or more likely to purchase their cannabis from black market sources, with this trend not showing any signs of stopping.

HEXO Corp.

HEXO Corp (TSX:HEXO) ( NYSE-A:HEXO)  reported its financial results for the third quarter of the 2019 fiscal year with $15.9 million in gross revenues and a net loss of $7.7 million. The company claims it is on track to reach $400 million in net revenue in 2020 and says it will double net revenue in the fourth fiscal quarter.

Executive Spotlight: Amanda Ostrowitz, Founder & CEO of RegsTechnology

Amanda Ostrowitz is a regulatory attorney and entrepreneur who’s identified a need for a user- friendly, scalable platform to research regulations and laws in the cannabis industry. Amanda founded RegsTechnology and its current product, CannaRegs, as a tool to aid attorneys, business people, and governments with localized tracking of regulatory issues.

MJMicro Conference

Although adult-use cannabis is legal in nine U.S. states, problems persist with companies trying to gain access to capital and essential financial services. Consequently, the industry has devised a series of methods and institutions to circumvent these difficulties; from credit unions to keeping their funds in a giant safe. Another unique way that the cannabis industry has adapted to the issue has been connecting companies with private capital investment through investor forums. A perfect example of this is the MJMicro Conference planned for June 25, 2019, in New York City.

In Other News

Tilray

Tilray, Inc. (NASDAQ: TLRY) today announced the appointment of Kristina Adamski as Executive Vice President, Corporate Affairs. Adamski will help coordinate the company’s corporate affairs team and help oversee the company’s public relations, corporate social responsibility and government affairs functions. Adamski previously served as Nissan North America’s Vice President of Corporate Communications for more than three years. “We’re thrilled to welcome Kristina to our growing senior leadership team. We’re confident that her vast experience in corporate affairs and global communications will support Tilray’s long term global growth strategy as we expand around the world,” says Brendan Kennedy, CEO, Tilray.

Treehouse REIT

Treehouse Real Estate Investment Trust, Inc. announced that it has closed on nearly a $16 million debt commitment with a large, federally insured and regulated commercial bank. As the company continues to acquire cannabis-use properties, the note commitment will carry a 5.6% interest rate and provides for a revolving facility for future notes. “Treehouse is excited to announce that we have successfully procured federally insured commercial bank financing,” said Brian Kabot, Stable Road Capital Chief Investment Officer and Treehouse Board Member. “The capital relationship allows us to continue executing cannabis-related real estate acquisitions in a scaled, non-dilutive manner that is most accretive to our investors. We are witnessing federally regulated lenders enter the cannabis space and we are thrilled to be at the forefront of those efforts.”

Canndescent

The luxury cannabis brand Canndescent announced that it has signed a definitive agreement to acquire buildings and operating licenses in Nevada, Michigan and Massachusetts for $28.5 million. The acquired building will be retrofitted to support the company’s proprietary cultivation and extraction methods. “Our expansion is a huge win for cannabis consumers as the best of California cannabis will finally be available in other markets,” said Canndescent CEO Adrian Sedlin. “We’re sort of the ‘anti-MSO’ or as I like to call it, we’re an MSBO, Multi-State Brand Operator, having nailed brand and execution first and now rolling up assets with intentionality and understanding.”


StaffStaffFebruary 12, 2019
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5min4780

The First Cannabis Focused Tech Company to Move Beyond The Industry

Denver, CO – February 12, 2019 – Cannaregs, Inc. the leading web-based data technology platform providing up-to-date access to comprehensive cannabis-related legal data including rules and regulations from municipal, county, state and federal sources, has just announced the completion of a $2 million capital raise  to expand services and features nationally as well as beyond cannabis under the umbrella of Regs Technology (RegsTech).

RegsTechplans to deploy the capital strategically expanding its CannaRegs platform to enable the Company to scale nationally and expand its data platform beyond cannabis into other highly regulated hyper-local industries like shared transportation, electric and autonomous vehicles and emerging mobile telecom technologies.

“We’ve built a terrific set of advanced data services for our CannaRegs subscribers and are proud to be working with the best companies in the cannabis industry.” explained Founder and CEO Amanda Ostrowitz. “With this infusion of capital we’re confident that we will take RegsTech to the next level.”

Lead investors include Phyto Partnersand Panther Opportunity Fundalong with other high profile tech and cannabis VC investment. “By simplifying local legal search, Cannaregs helps all industry participants understand and comply with the laws saving time money and potential regulatory scrutiny.” said Larry Schnurmacher managing partner of Phyto.  “As the cannabis economy continues to expand to more states, the need for this type of legal resource grows and we think cannaregs will capture that market.” said Larry Schnurmacher, Managing Partner of Phyto Partners.

“We are excited to be investing in RegsTech after following Amanda Ostrowitz over the last two years and seeing her grow her team and company to be the leading provider of local compliance and regulatory tracking software, stated Jordan Tritt, Principal at Panther Opportunity Fund. “Amanda and her team are very well respected among cannabis operators, consultants and government entities, and this capital raise will allow RegsTech to expand its reach within the cannabis industry as well as other highly regulated and localized industries.”

CannaRegs is regarded as the most trusted resource for cannabis regulatory and policy  information. With over 500 users comprised of cannabis companies (e.g. Cresco, Kiva Confections, Caliva, Canndescent), law firms (Akerman, Thompson Coburn, Buchalter), governments (San Francisco, Sacramento, Mendocino County), consultants (3C Consulting, Green Wise Consulting, Muniservices), Real Estate Professionals (Kidder Matthews) and various other ancillary providers (Eaze, Hawthorne Gardening), its reach is far broader than the typical law firm audience of most legal tech platforms.

This capital raise ensures that CannaRegs is now able to offer even more information, new features, and enhanced user experience, while expanding nationally and with an eventual launch of additional Regs Techportals.

The next portal on the horizon for RegsTech is TransitRegs which will cover autonomous vehicles, electric vehicles and charge stations, app-based ride share, scooters, dockles bicycles and robotic deliveries.

About Regs Technology:

Regs Technology is a legal technology platform for highly regulated industries that are hyper-localized in nature. Its first product offering, CannaRegs, is a subscription platform that enables cannabis operators, law firms, investors, real estate professionals, consultants, and Governments to track cannabis regulation and policy, in real-time, providing users with critical information they need to make strategic business decisions, identify new opportunities and maintain compliance in an ever-evolving regulatory landscape. CannaRegs currently provides comprehensive cannabis laws for the states of California, Colorado, Florida, New Jersey, Nevada, Massachusetts, Michigan, Illinois, Ohio, New York, Missouri, and Pennsylvania to be followed by all other states that permit medical and/or recreational marijuana. For more information visit www.cannaregs.com.

 


StaffStaffFebruary 5, 2019
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8min11630

Americans are expected to spend a record amount on Valentine’s Day this year despite a years-long decrease in the percentage of people celebrating the holiday, according to the annual survey released today by the National Retail Federation and Prosper Insights & Analytics.

“The vast majority of Valentine’s Day dollars are still spent on significant others, but there’s a big increase this year in consumers spreading the love to children, parents, friends, and coworkers,” NRF President and CEO Matthew Shay said. “Those who are participating are spending more than ever and that could be the result of the strong economy. With employment and income growing, consumers appear to be expanding the scope of who qualifies for a card or a box of candy.”

Another study from St. Louis University in Missouri,  found that cannabis could improve your love life. 133 women were surveyed and said that they consumed cannabis shortly before engaging in sexual activity. 68% of those women said that it made sex more pleasurable. From that same study, 62% of participants said that cannabis helps them achieve a more satisfying orgasm.

A different study from Stanford found that women who abstained from cannabis in the past year, had sex on average 6.0 times during the previous four weeks, whereas that number was 7.1 for daily cannabis users. Among men, the corresponding figure was 5.6 for nonusers and 6.9 for daily users. That means regular cannabis users are having 20% more sex than abstainers.

Foria

Foria makes a sun-grown cannabis CBD arousal lube and the company is offering two bottles of its product Awaken for the price of one as a Valentine’s Day special. The company says if you order by February 7, you’ll receive it in time for the holiday.

Canndescent

 

California’s leader in ultra-premium flower Canndescent  has a product called Connect, which seems perfect for Valentine’s Day. Their Connect strains are formulated specifically to kindle socialization and deep connections with other people – perfect for your romantic evening plans. Sadly, it’s only available in California. Gorgeous gift boxes with ⅛ of flower are available at licensed California dispensaries, as are the newly-launched and extremely classy Stylus rechargeable and Ready-To-Use vaporizer pens.

Papa & Barkley

Interested in a massage? Papa & Barkley’s cannabis-infused Releaf Body Oil is the right choice.

Papa & Barkley’s full line is available in California, but everyone else can enjoy their Essentials line, which offers a hemp-based CBD oil, which can be put in any drink, food, or a nice, relaxing bubble bath.

 

MOOD33

Want to set the mood… without relying on alcohol? mood33 has crafted a delicious PASSION tonic that is infused with THC, CBD and uplifting natural terpenes – all under 33 calories per beautiful bottle. Inspire yourself and your partner with the sensuous flavors of sparkling green tea, sweet passionfruit and tart lime.

 

Bhang

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Guilt-free chocolate is the way to your love’s heart. Bhang makes a delicious 73.5% cacao CBD dark chocolate that is not to be believed. The company also makes a new nicotine-free tobacco-free all hemp Pre-Roll Straights. The Bhang team brings together its love of chocolate and cannabis in the most awarded line of cannabis chocolate bars available in the world. Developed by a Master Chocolatier with 25+ years of chocolate-making experience, these artisan bars pair the best in Venezuelan Criollo cacao with adventurous flavors and high-quality, lab-tested, CO2-extracted cannabis oil.

Ardent Cannabis

 

More of a DIY person? Try Goat’s Milk Sweet Quartet Caramel Infusion Kit that retails for $35. You can make delicious, dispensary-grade edibles from the comfort of your own home— elevate any treat by simply drizzling over a dessert and/or dipping your favorite fruit!. Lactose-free flavors include: Original Caramel, Spicy Dark Chocolate, Salted Bourbon and Vanilla Bean

Fog & Tree

Still not satisfied? Oil, chocolates, beverages still aren’t the perfect gift? How about

Fog & Tree Eau de Parfum, an all natural fragrance that is blended with real cannabis terpenes, could be exactly what your loved one is looking for. The fragrance will take your senses on a journey through the Redwoods of Northern California with the woodsy and herbaceous scent with fresh coastal fog.

The terpenes used in Fog & Tree are all harvested from Humboldt Seed Company’s proprietary strains. Not only are they blending their fragrance with terpenes from award-winning genetics, but they are also reaping the benefits of Humboldt’s unique terroir.


StaffStaffSeptember 11, 2018
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8min6240

Ten New Investments Since Initial March 2018 Fund Close

New York – September 11, 2018 /AxisWire/ Altitude Investment Management, LLC updated the market today on its fund Altitude Investment Partners, LP’s recent cannabis industry investments. During the period of March through August 2018, Altitude invested in ten companies: six of which were add-on investments to existing portfolio companies and four were investments in companies new to the Altitude portfolio.

The Altitude portfolio now consists of investments in 15 companies. The following is a summary of a selection of notable recent investments:

BDS ANALYTICS

Altitude made an add-on investment as co-lead in BDS Analytics’ Series B Preferred Stock $3.5 million capital raise. BDS is the leader in cannabis business intelligence. This funding places BDS in a very strong position to execute the national expansion of its GreenEdgeTM software and to roll out its Consumer Insights & Industry Intelligence services to a much broader client base. Using the GreenEdgeTM sales tracking software, BDS Analytics is able to generate actionable insights pulled from hundreds of dispensary partners’ point-of-sale systems and closely study the behaviors and psychographics of cannabis users through its Consumer Insights Group. Its Industry Intelligence Services enables the company to make accurate market-wide financial projections and help the cannabis industry make better informed decisions. “We are very impressed with the management team,” says Jon Trauben, partner at Altitude. “Based on extensive experience in other industries, BDS Analytics has developed proprietary software and services that provide its clients with really useful data and insights. Its value is reflected in the rapid growth and diversification of the BDS Analytics client base.”

CANNDESCENT

Altitude made an add-on investment in Canndescent’s Series C Convertible Note $13 million capital raise. Canndescent closed 2017 as the #1-selling brand of cannabis flower in California with its market-leading effects—Calm, Cruise, Create, Connect and Charge and is taking that success to the vape and ingestible categories. Canndescent is a leading modern cannabis company by combining world class management with best practices from consumer-packaged goods, advanced agriculture, and luxury lifestyle marketing. The company is commencing a multi western-state expansion strategy. John Brecker, partner at Altitude added, “We took a small position in Canndescent’s Series B Preferred Stock raise and have increased our investment significantly based on the milestones the company has achieved in such a short period of time.”

GRASSROOTS CANNABIS (AES Compassionate Care PA and Grassroots Compass Ventures IL)

Altitude made separate investments in both AES Compassionate Care Pennsylvania and Grassroots Compass Ventures Illinois. Each are fully-licensed, vertically-integrated cannabis companies that are active in cultivation, extraction, manufacturing and retailing. Both companies are managed by the same management team. Altitude partner Michael Goldberg stated, “Our investments in multistate vertically-integrated operators will allow us to participate in the growth and value creation as the medicinal markets grow, new patients are added, and new approvals for qualifying conditions increase the patient base. Additionally, large upside exists when a planned rollup takes place and as these states legalize adult use.”

FLOWHUB

Altitude made an add-on investment in Flowhub’s Convertible Note $3.3 million capital raise. Setting a new standard for the highly regulated industry, Flowhub offers dispensary and cultivation license holders a metrc™ integrated platform built specifically to simplify compliance, with data automatically sent to state regulators via an API. Flowhub’s award-winning software serves more than 300 of the largest retailers and cultivators in the United States. Flowhub processes over $1B in cannabis sales annually and is the top cannabis compliance technology recommended by state agencies. Rod Stephan, partner at Altitude added, “Flowhub has successfully created software which meets the regulatory and compliance requirements of each state and also creates a sticky customer with recurring monthly revenues. We are excited by the accelerating growth of this company.”

C4 DISTRO (Golden Systems)

Altitude made a lead investment in Golden Systems’ Class B Preferred Units $5 million capital raise. Golden Systems owns C4 Distribution Co. (a.k.a C4 Distro), a California-licensed distribution operating company. C4 is poised to become a leader in the California cannabis distribution market. California needs companies to provide quality distribution services due to the extremely fragmented market of suppliers and retail dispensary buyers. C4 has most recently added four new brands for distribution to its growing list of products. Rod Stephan stated, “With service to over 160 dispensaries in southern California, C4 is experiencing accelerating month-over-month growth by leveraging its high touch business model to build close relationships with its customers. The distributor plays a material role in the supply chain as well as in creating and growing brands. We believe C4 has the right management team to capitalize on this opportunity.”

PATHOGEN DX

Altitude was the co-lead investor in PathogenDx’s Convertible Note $3.4 million capital raise. PathogenDx provides DNA-based disruptive testing technology and solutions to the cannabis, botanical, food, and agriculture markets at an adaptable scale for both large and small testing facilities. The company offers growers, processors, producers, consumers, and ancillary services real-time data and information pertaining to the quality of their product, ensuring a safer commodity and preventing millions of dollars in losses from contaminated or spoiled crops. PathogenDx’s testing kits identifies bacterial and fungal contaminants and reduces testing time down to hours from the traditional petri-dish method which takes days. Jon Trauben commented, “The company is in an enviable position as it fulfills a central regulatory need with cutting edge science, while alleviating existing bottlenecks.”

ABOUT ALTITUDE INVESTMENT PARTNERS

Altitude Investment Partners, LP is a US-based, global venture capital fund that invests in a range of early-stage to growth companies supporting the fast-growing legal global cannabis industry. The fund is managed by Altitude Investment Management, LLC, (the “Manager”), whose members have been actively investing in the cannabis industry and have successfully invested in the alternative investment space for years. The Manager provides institutional quality investment management experience to its investors. The fund continues to accept new investments and plans to close the fund to investors later this year. For more information about Altitude Investment Management please contact info@altitudein.com or visit www.altitudein.com.


Jack SmithJack SmithSeptember 6, 2018
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4min10580

Nearly 8 months after raising $10 million in a Series B financing, California-based Canndescent has raised an additional $13 million, as it seeks to further expand on its way to becoming “the Hermes of cannabis.”

With the new financing, the company will look to expand its cannabis flower (which it says is the number one selling brand in California) and bring them to new products, such as vaping and ingestibles over the next 12 months.

In the short term, specifically defined as the next month, Canndescent will announce a second brand after it had a successful soft launch over the summer.

“We’re excited to offer the best of California to other legal states and to reimagine other cannabis categories the way we reconceptualized flower,” CEO Adrian Sedlin said in a statement.

Sedlin continued: “Our new investors share our vision of more products, more brands, and more states, and their investment comfortably bridges us to our Series C equity round to occur in the next 6 months.”

Merida Capital led the Series C convertible offering. Mitch Baruchowitz, a managing partner at Merida, said the team was impressed after having met Canndescent four years ago, leading to them ultimately making an investment. “The decision to make it one of our first cultivation investments and lead the round was solidified by their strong governance and leadership,”   Baruchowitz said in the statement.

Also participating in the round was Altitude Investment Management, which also provided financing in the company’s Series B funding round. “We took a small position in Canndescent’s Series B raise and have increased our investment tenfold based on the milestones the company has achieved in such a short period of time,” John Brecker, a Partner at Altitude Investment Management said.

Canndescent is part of the self-described “cannabis 2.0 charge,” and is bringing cannabis into the mainstream in a variety of ways, including luxury and lifestyle marketing.

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 raised $6.5 million in 2016, including from Sedlin himself.


Jack SmithJack SmithJanuary 25, 2018
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4min15930
California-based Canndescent 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.


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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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