C3 Industries, an Ann Arbor-based cannabis producer and retailer, has closed a round of private financing, bringing the total amount of capital it has raised to date to more than $25 million. The company says it will use the funding to continue to expand in existing markets and to enter new ones.
C3’s current business plan includes a three-state strategy of Michigan as well as Oregon and Massachusetts. The company also has submitted cultivation, processing, and retail license applications in Missouri.
“We’ve been able to leverage our experience in Oregon and replicate it in Michigan, Massachusetts, and hopefully soon in Missouri, says Vishal Rungta, president and CFO of C3 Industries. “Our ability to efficiently manage capital and focus on the fundamentals has enabled our company to build a sizeable asset base with a relatively modest amount of capital.”
Rungta says C3 will invest more than $25 million in Michigan’s cannabis industry between its new 35,000-square-foot cultivation and manufacturing facility in Webberville (near Lansing), set to open this month, additional production capacity currently under development, and a large network of it High Profile dispensaries across the state.
The company recently opened a cannabis dispensary on Detroit’s far east side at 20327 Groesbeck Highway.
C3 also will continue to strategically expand its presence in Oregon where it has been operating a 36,000-square-foot cultivation facility for the past 18 months. A new hydrocarbon extraction lab is beginning construction and C3 recently closed an acquisition for the first High Profile-branded dispensary in Portland, subject to regulatory approval.
In Franklin, Mass., C3 will begin construction on a 37,000-square-foot cultivation and manufacturing facility this winter, and plans to open a retail network in 2020.
The most recent round of funding was led by Madison Square Park Capital, an institutional investor based in New York City with a portfolio of investments in the space.
“Larger, more sophisticated investors are entering the cannabis industry as the regulated market continues to mature and thrive,” says Ankur Rungta, CEO of C3 Industries. “As part of the investment, one of the principals of MSP Capital will join our board and will add substantial strategic value to C3 by facilitating strategic partnerships with other cannabis companies, capital raising and real estate opportunities.”