Massachusetts-based MariMed, a multistate cannabis operator, is entering the hemp-derived CBD business with a $30 million investment in a Kentucky company.
The company, GenCanna, has contract farmers to grow hemp to its specifications as well as processing facilities to turn the plant into CBD extracts, concentrates, isolates and other products.
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.