D.C.-based cannabis firm Holistic Industries announced on Tuesday, May 11, 2021, that it had successfully raised $55 million in funding. The investment round reportedly comes in the form of a convertible note, nearly double the initial $30 million amount it set in March this year.
In total, the Washington Business Journal reports that Holistic Industries Inc. has now raised over $155 million. The company last participated in October 2019’s Series A investment round when it sought to take home less than the $55 million it raised.
Holistic Industries Inc. is a privately held multistate cannabis company. It is considered one of the largest, if not the biggest, private multi-state cannabis operator in the whole of the United States, notes New Cannabis Ventures.
The oversubscribed funding round was led by the Stoneview Fund from the Harbert Management Corp.’s hedge fund, reports the Washington Business Journal. According to Law 360, the transaction was done under the guidance of Feuerstein Kulick LLP as well as Stroock & Stroock & Lavan LLP.
The investment round comes as the company aims to strategically expand its services into the neighboring states of Missouri, West Virginia, New Jersey, Georgia, Virginia, and many others, notes Law 360. In addition to its expansion plans, the cannabis company is also looking to make some acquisitions and mergers.
Besides these aforementioned activities, the company is also looking to launching new brands and furthering product developments with the new funding in tow, reveals New Cannabis Ventures.
In a statement, chief executive officer of the Holistic Industries Inc. Josh Genderson said of the mergers and acquisitions, “What we’re looking at now are more transformative M&A deals, bigger deals, bigger companies, lots more revenue.”
In a separate press release, Holistic Industries Inc. also said that, “we see tremendous opportunity ahead for us and our investors. With this latest round of funding, we will continue our strategic expansion and continue to develop the operational scale and managerial excellence that makes us the best place to work, shop and invest.”
To address the five-year-old company’s growth, the Washington Business Journal states it expects to double its approximately 500-person staff within the next 10 months. It is also slated to hit its goal of obtaining a revenue of more than $200 million for 2020, as well as adding 13 more locations to its Liberty Cannabis dispensary brand on top of the already existing 15 sites.
Alongside the expansion of Liberty Cannabis, Holistic Industries will also be doubling down on some of its cannabis products and concepts. These include lower potency edible gummies by the name Do Drops, a Jerry Garcia-inspired product line, and launching another medical marijuana brand on the market called Cannaceutica.
According to the Washington Business Journal, the company aims to cater to different types of individuals across the spectrum, from beginners who have never learned or heard about the marijuana industry to the more seasoned users on the market.
The company will also partner with those in the academe, including the likes of state schools, community colleges, and university as part of its expansion plan. This goes alongside educating more people about cannabis and having more of these individuals work with Holistic Industries in the future, notes the Washington Business Journal.
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