Ohio-based Klutch Cannabis looks to have raised $10 million as the producer is keen on securing licenses. According to Pitchbook, the company raised $10.9 million as of February 1, 2022. It is said to be convertible debt financing from undisclosed investors and the funding will be converted to Series C, D, and E. It could be money that is anticipating Klutch winning some dispensary licenses. Klutch currently possesses cultivation and processing licenses but the company wasn’t able to secure a dispensary license during the original process in 2018. Klutch did not respond to a request for confirmation of the capital raise.
Founder Adam Thomarios apparently decided to take no chances and ultimately entered 73 dispensary applications all across the state of Ohio. According to Cannabiz Media the applications are under the name Citizen Real Estate LLC. Considering that each application costs $5,000, it didn’t take long for the competition to see that Klutch spent $365,000 just on the paperwork. That’s a big flex for an up-and-coming cannabis company. It’s also a big gamble for a limited number of licenses. The state of Ohio has a five dispensary cap and limits within each dispensary district on how many new licenses are even available.
“The only way that we could be competitive in that kind of process was to be very aggressive and find good real estate that was valuable and we believe we accomplished that,” said Thomarios to News 5 in Cleveland. Klutch has said that it thinks it can get at least three dispensaries through this process.
Klutch Cannabis is a cultivator and processor that was founded in April of 2020 in Akron, Ohio. AT-CPC LLC was the original name of the company that did business as Klutch. It was a subsidiary of Calyx Peak Companies, which operates cannabis-related operations in California, and Nevada but in 2020 AT-CPC of Ohio separated from Calyx and rebranded under the name Klutch Cannabis.
The company says it cultivates a host of rare, coveted, and award-winning phenotypes under its Klutch Cannabis and Klutch Select brands, and markets cannabis-infused wellness products under its Klutch Mind and Body brand. Klutch also holds Ohio-exclusive partnerships with California-born Kiva Confections, bringing Kiva’s industry-leading, premier line of award-winning and artisan-inspired edibles to Ohio, along with the lauded cannabis brand Josh D, founded by one of the originators of Los Angeles’ OG Kush movement and first-place finisher at the 2019 Emerald Cup in the Licensed Mixed Lighting Flower Category.