Austin-based Texas Original Compassionate Cultivation secured $21 million in funding to boost medical marijuana production and delivery.
The funding comes on the heels of state lawmakers passing a measure that expands the state’s MMJ program by modestly raising the THC limit to 1% by weight and adding cancer and post-traumatic stress disorder (PTSD) to the list of qualifying medical conditions.
“This raise demonstrates our ongoing commitment to the Texas cannabis industry and to our current and future patients throughout the state,” the company’s CEO, Morris Denton, said in a news release.
The Series B funding comes from AFI Capital Partners, a Seattle-based equity fund focused on early stage and next-level investments in potentially high-growth cannabis markets.
Texas MMJ advocates have said that up to 2 million of the state’s residents are eligible for medical marijuana, but as of April, only 5,413 qualified patients were registered in the limited program.
The three vertically integrated licensed operators in the state currently are allowed only one dispensary each, making delivery a critical part of their business model.