A Toronto-based cannabis, coffee and clothing business, Tokyo Smoke, secured 3 million Canadian dollars ($2.25 million) from investors, claiming it’s the first marijuana-related consumer brand in Canada to raise capital.
The company, which describes itself as a premium cannabis-oriented lifestyle brand, said in a news release that the first-round raise was oversubscribed and that the amount was more than 50% above its initial target.
Investors hail from Canada, the United States and South America and include Chuck Rifici, co-founder of two cannabis-related Canadian companies: Canopy Growth Corp., Canada’s first publicly traded medical marijuana company, and Nesta Holding Co., a private equity firm.
Tokyo Smoke’s strategic plans coincide with Canadian Prime Minister Justin Trudeau’s pledge to introduce legislation this spring to legalize adult-use cannabis.
In the first quarter of this year, Tokyo Smoke is partnering with Aphria Inc., one of Canada’s biggest licensed MMJ growers, to sell four branded cannabis strains. The new release did not give details about the strains or where they would be sold.
The raise also will enable the company to expand into the United States in 2017, according to the news release. Tokyo Smoke’s other plans for the new funding include product development and hiring managers.