Jack Smith
With the cannabis industry still in its nascent stages, consolidation is bound to happen, as companies look to capture as much of it as they can. And MJardin wants to be a part of that.
Denver, CO.-based MJardin announced it has closed on $20 million in financing (both equity and debt) from KES 7 Capital to acquire companies, something the company believes can help take it to the next level.
“We saw this as not only a logical next step but an opportunity for a transformational partnership,” said James Lowe, Co-Founder, Director and Chief Cultivation Advisor at MJardin in a statement. “We brought in strategic long-term shareholders [KES 7 Capital] who will support the Company for both near and long-term growth initiatives. MJardin has now further solidified its position as a market leader.”
In addition to looking at acquisitions, MJardin said it will use the proceeds for general working capital and corporate purposes.
KES 7 Capital CEO and President Mark Christensen said the financing puts further confidence behind MJardin as one of the companies likely to benefit from consolidation in the space.
“We looked at many cannabis deals and companies, and MJardin is a clear leader in the space,” said Christensen. “We are very excited to continue working with the MJardin team on their future growth initiatives and their Canadian strategy.”
MJardin specializes in providing different services to its partners in the legal cannabis industry, including “turnkey cannabis cultivation and processing solutions including licensure support, facility design, and systems implementation.”
It also provides “facility ramp-up and the day-to-day operational management required in a large-scale, professionally managed cannabis facility.”
The capital raise comes after MJardin announced a strategic partnership with Bridging Finance “to create the premier infrastructure fund for the consolidation of the cannabis sector.”
Earlier this month, MJardin announced a partnership with Grand River Organics to “produce and distribute medical cannabis throughout Canada under Health Canada’s ACMPR, while positioning for the ultimate legalization of recreational cannabis.”
In August, MJardin partnered with The Canadian Bioceutical Corporation (BCC) to provide a number of different services for BCC’s licensed facilities across the U.S., including ones in Massachusetts and Nevada.
In a November report, Ernst & Young believes consolidation is inevitable in the legal cannabis space, particularly in Canada.
Chuck Rifici, a leading cannabis investor in Canada, believes that now is the time to buy other companies while the market is still growing.
“It makes sense to do deals where you’re buying optionality in a future market for not much in stock,” Rifici said in an interview with CBC News. “These smaller companies are in a position to fill in gaps and get a nice premium on their stock and the larger guys are essentially printing cheap paper to do those deals.”
One comment
ROGER DUFFIELD
February 19, 2018 at 5:53 am
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Thank you and await your responses