To help fund its national expansion, California-based Connected Cannabis Co. has raised $30 million from a group of new and existing investors.
The debt and equity round included existing investors Navy Capital and One Tower group, as well as new investors Emerald Park Capital and Presidio View Capital.
In a news release, Connected CEO Sam Ghods, who previously co-founded the cloud storage company Box Inc., said the growth capital would enable the cannabis firm to bring its “product and brand to consumers in new markets.”
“We are steadfast in our development of new, best-in-class genetics and our production of top-quality flower that has resulted in impressive growth and unwavering customer loyalty,” he said via the release. “That same commitment and quality that we’ve prided ourselves on from day one will stay with us as we enter additional states.”
The company, which raised $25 million as part of a Series A round in 2019, said it is eyeing Nevada and Michigan as potential expansion markets.
Founded in 2009, Connected currently operates cultivation facilities in California and Arizona. It also has retail locations in Sacramento, San Francisco, and Stockton, according to its website.
In 2017, Connected acquired the Alien Labs, another California-based grower of premium cannabis.
“Connected’s product quality is unmatched across the cannabis industry, as exemplified by their dedicated mass following,” Navy Capital partner Chetan Gulati said via the release.
Citing data from BDSA, WeedWeek reported that sales of Connected and Alien Labs flower reached nearly $50 million during the first nine months of 2020.
For its part, Connected said it is EBITDA-positive and has experienced 68% year-over-year growth. The company is also forecasting 75% revenue CAGR through 2021.