Massachusetts-based MariMed, a multistate cannabis operator, is entering the hemp-derived CBD business with a $30 million investment in a Kentucky company.
GenCanna plans to use the money to expand its cultivation and processing operations.
Here are details of the investment, according to a MariMed news release and a company spokeswoman:
- GenCanna will become MariMed’s supplier of hemp-derived CBD.
- The two companies will create CBD products and brands together.
- MariMed (OTCQB: MRMD) will create a business unit focused on CBD consumer products.
- MariMed will distribute hemp-derived CBD products, but they will not be sold in the firm’s cannabis dispensaries.
- MariMed can convert its investment in GenCanna into a one-third equity position in the company.
- All hemp processing will take place within GenCanna’s facilities.
MariMed, a vertically integrated operator, has facilities in Delaware, Illinois, Maryland, Massachusetts, Nevada and Rhode Island.