Cannabis technology startups, including those that enabled home delivery, received a big boost during the pandemic as more and more Americans partook in the growing number of legal states. This has ignited investor interest in companies that provide everything from retail and e-commerce software to cultivation management tools. This week has seen some interesting large investments and acquisitions in the industry.
Dutchie is a cannabis tech company that created an app to connects customers with local cannabis retailers. Dutchie recently raised $200 million in a Series C, to value the company at $1.7 billion. Many big name investment groups were involved, including Tiger Global, Thrive Capital, and Casa Verde Capital, which is co-founded by Snoop Dogg. In addition to raising this large amount of capital, Dutchie announced the acquisitions of cannabis retail platform Greenbits and cannabis software provider LeafLogix.
Greenrose Acquisition Corp. (GNRS), a cannabis-focused special purpose acquisition company, or SPAC, has agreed to buy four U.S. cannabis companies for $210 million. Greenrose will be acquiring Shango Holdings, Futureworks, Theraplant and True Harvest. Combined, these companies run a number of dispensaries, cultivation and processing facilities across seven states. Greenrose Acquisition Corp. will change its name to the Greenrose Holding Company before completing the purchases of the four companies.
GrowGeneration (GRWG) has acquired Char Coir, producer of popular hydroponic growing materials made from coconut fiber. GrowGeneration currently has 50 stores across the U.S. and sells growing supplies and nutrients for both individual and commercial cannabis growers. This acquisition is expected to generate an additional $15 million in sales this year.
Dutchie is currently privately held but I am going to be keeping an eye on this company going public. Greenrose Acquisition Corp. (GNRS) and GrowGeneration (GRWG) are currently being traded on the NASDAQ, although Greenrose is planning to move from the NASDAQ to the OTCQX Best Market. What do you think about these companies? Leave me a like and drop a comment with your thoughts about investing in the cannabis industry.