Northern California marijuana manufacturer and cultivator CannaCraft will merge with Southern California retail chain March and Ash in a deal that will likely prove mutually beneficial.
According to Forbes, Santa Rosa-headquartered CannaCraft and San Diego-based March and Ash worked on the merger for “at least six months” before making the announcement this week.
Financial terms of the deal were not disclosed, but company spokespeople confirmed to Forbes and other news outlets that financing was provided by Altmore Capital.
No layoffs are planned, and the newly created entity – to be named Groundwork Holding – will be led by CEO Bret Peace.
Peace is the current partner, co-founder and general counsel at March and Ash.
Otherwise, the two companies will retain their C-suite structures, Forbes reported, and a new board will be created to oversee Groundwork Holding.
The merger will give CannaCraft a dedicated retail outlet for its immense portfolio of branded products, which include Care by Design, Farmer and the Felon, AbsoluteXtracts and more.
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The move will also give March and Ash – which runs seven marijuana shops and delivery services in SoCal – a steady supply of products, making it a win-win for both parties, the North Bay Business Journal reported.
“Both companies decided to stay in the California market for the long haul,” Peace told Forbes. “Neither of us have any intention of selling, but we could have. We have no intention of going public.”