C3 Industries in Ann Arbor, a multi-state, vertically integrated cannabis company, has announced the close of a $25 million capital raise led by existing investor Madison Square Park Capital.
Current investor Welcan Capital and new institutional investor Navy Capital, among others, also participated in the round. C3 states it previously closed more than $40 million of capital in a series of private rounds, bringing the total amount of capital raised to date to roughly $65 million, all of which has been sourced via direct relationships and without any involvement from banks or placement agents.
Most recently, C3 initially pursued $10 million in capital funding but upsized the round to $25 million after receiving in excess of $50 million in verbal commitments. With the additional funding, C3 will accelerate its expansion in both its existing markets of Michigan, Massachusetts, Missouri, and Oregon as well as attractive new states, which it plans to enter organically and via pragmatic, accretive M&A opportunities.
In addition, the company also will invest heavily in its team, brands, and business infrastructure as it continues to scale.
“We’re thrilled with the amount of interest received from investors and the upsizing of our financing, which provides us with an opportunity to add additional strategic investors to our capital stack,” says Vishal Rungta, president and CFO of C3 Industries. “After successfully navigating the pandemic with no loss of assets or employees, we’re well positioned to execute on our plans for strategic expansion in new and existing markets. We look forward to further strengthening our retail footprint and product offering as more and more states legalize cannabis and additional opportunities arise.”
Across the four states, C3 has approximately 250,000 square feet of cannabis production space operating or under development. The company has more than 20 High Profile retail dispensaries in various stages across all four of its markets.
“C3 Industries is on an aggressive expansion path in promising cannabis markets and we are pleased to work with the leadership team as they strategically build out their portfolio,” says Chetan Gulati, a partner at Navy Capital. “We believe the management team at C3 Industries is best-in-class in the industry and we see tremendous opportunity with their current trajectory as additional markets open up to the incredible potential of the cannabis industry.”
C3 has begun construction on the expansion of its existing 36,000-square-foot cultivation and manufacturing facility in Michigan, which will add an additional 90,000 square feet to quadruple production capacity for 2022. The company currently has 11 retail locations with full approval in Michigan and multiple additional locations under development.
In the highly competitive Missouri licensing process, C3 was awarded five retail licenses and one manufacturing license, with three operating High Profile locations already open. In addition, C3 is launching ground-up construction of a 40,000 square foot cultivation facility to bring its brand, Cloud Cover Cannabis, to the Missouri market and complete its vertical platform in the state.
Earlier this year, the company acquired an existing dispensary in Portland, Oregon, which recently opened as a High Profile Cannabis Shop this past March following renovations. C3 is targeting additional stores to expand its portfolio to include up to three to five retail locations in the greater Portland market.
C3 is also establishing three retail locations in Massachusetts. Its first High Profile store in the state, located in the Dorchester neighborhood of Boston, will open in Q4 2021.Two additional locations are expected to follow in Q4 2021. C3 is also nearing completion on the ground-up construction of a 37,000 square foot cultivation and manufacturing facility in Massachusetts, which is expected to launch this fall and bring Cloud Cover Cannabis products to market by year end.
For more information, visit www.c3industries.com.
Vishal Rungta, and his brother, Ankur (CEO of C3), were each featured as 30 in Their Thirties by DBusiness magazines from reader nominations.
To read about Ankur Rungta, visit here.
To read about Vishal Rungta, visit here.
