Los Angeles-based Vertical Companies – a vertically integrated multistate cannabis firm – closed a $58 million Series A funding to build out the company’s footprint and bring its brands to market.
The company originally targeted a $20 million funding but boosted that to $35 million in late 2018 because of investor demand.
The $35 million goal was oversubscribed by $23 million, bringing the total to $58 million.
The raise was led by cannabis industry private equity fund Merida Capital Partners and international companies, including “significant players in the alcohol distribution and brand space,” according to a news release.
The company’s subsidiaries include:
- Vertical MSO, which is expected to reach roughly 1.9 million square feet of cannabis cultivation this year as well as extraction and manufacturing facilities.
- Vertical Wellness, a hemp-based CBD operator and brand firm, with 2,000 acres of hemp cultivation contracted for 2019 as well as manufacturing and extraction operations. The company plans to spin off Vertical Wellness, which includes all of Vertical’s hemp-based CBD assets, to shareholders of record as of April 1.
- Vertical Distribution, which has several distribution operations in California, including Oakland, Los Angeles and Needles.
In January, Vertical Companies announced it had accumulated 161 business licenses in California alone.