Cannabis marketing and distribution firm Petalfast has raised $8m in an equity financing round. Led by a group of family offices, with interests including beverage alcohol distribution, the funds will allow Petalfast to expand its sales team and retail engagement services. The firm will expand further into markets where the adult use of recreational cannabis is legal. Petalfast brands sold in retail outlets include Lime, Sip Elixirs, Ciencia Labs, Hello Again and VetCBD, among others. CEO Jason Vegotsky acknowledged his company's new investors brought expertise from highly regulated industries.
Minnesota is expected to have a minimum of 381 cannabis dispensaries throughout the state, according to the regulatory body in charge of implementing state-wide legalization. The estimates are aligned with state law which requires a retail registration for every 12,500 individuals. OCM's new report stated that it is impossible to accurately assess demand and supply, emphasising the need for further research. Minnesota's legal marijuana sales will officially launch next year. In contrast, illicit marijuana sales have steadily increased throughout the state in the absence of a regulated market. The Minnesota Office of Cannabis Management (OCM) has announced plans to create an interagency plan to tackle a domestic hemp industry selling marijuana buds that contain above the 0.3% THC threshold.
Canadian cannabis producer Canopy Growth has raised $35m from a private placement of tranched units with "certain institutional investors". Each unit comprised one common share and one class A or class B common share purchase warrant, with series A exercisable for five years immediately following the placement's close, and series B after six months. The proceeds will give the Ontario-based company more financial clout, allowing it to pay down debt and giving it some marketing cash. In November, Canopy cut its debt by C$364m, bringing its total debt reduction to C$1bn ($798m) since the start of the fiscal year. The company is now hoping to cut costs further, targeting a C$300m reduction by the end of the current fiscal year.