Multistate cannabis operator Vertical closes $58 million Series A funding round

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.

One comment on “Multistate cannabis operator Vertical closes $58 million Series A funding round
  1. Hans-Peter Steigerwald on

    Hello,

    I find your analysis of cannabis stocks and related issues vers interesting. May I ask you whether you could let me know what you think of the following two stocks: FSD Pharma and Veritas Pharma.

    FSD Pharma has an enormous potential but I do not understand why the shares still trade at a very low price. They follow a good strategy, have build up a good network and the company has no debt. However, it might take them quite a while to achieve their goals and this might be one of the reasons.

    Veritas Pharma is – from my view – fairly small in order to achieve significant results that would attract investors and are currently solving a legal problem with Liht Cannabis. Form my view thy try to do a good job and I think that their strategy is good too. Unfortunately the shares have made a loss of over 70% since about a year.

    Kind regards from Salzburg (Austria)
    Hans-Peter

    Reply

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