Illinois marijuana firm Grassroots closes $90 million raise to expand operations

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Chicago-based Grassroots Cannabis said it completed a $90 million capital raise designed to expand the company’s footprint and operations.

Grassroots, a vertically integrated cannabis company that operates in 11 states, said in a news release it will use the funds to:

  • Expand cultivation facilities in Illinois, Maryland and Pennsylvania.
  • Build out newly secured dispensary licenses.
  • Bankroll the company’s strategic partnership with Phyto Science Management Group in Vermont; in particular, Grassroots wants to expand cultivation and lab capacity, as well as a hemp-derived CBD business.
  • Finance future mergers and acquisitions.

Grassroots – a privately held company with over 400 employees – said it initially planned to raise $40 million through its convertible note offering but boosted the amount to $90 million in the face of strong investor demand.