A company that secured one of two licenses to grow and sell medical marijuana in Minnesota has raised nearly $12.4 million in equity financing, a relatively large sum for a startup MMJ business.
LeafLine Labs, which was founded by members of the family that runs a well-known chain of garden centers in the state, will use the money to build out its cultivation facility and open its first dispensary.
The infusion indicates that investors are eager to get involved in the state’s MMJ industry. It also reflects the increasingly high costs of opening cannabis businesses in new medical marijuana states.
Some observers have said they expect startup costs for licensed MMJ businesses in Minnesota will run $10 million or more.
LeafLine, which has lined up 113 investors, is seeking an additional $2.7 million in equity, according to the Minneapolis-St. Paul Business Journal. The company will grow marijuana in Cottage Grove and is expected to open its first dispensary on July 1.
LeafLine was named this week as one of two businesses that will be allowed to grow and distribute in Minnesota. Each company will be able to open up to four dispensaries.