Ann Arbor’s C3 Industries, a multi-state, vertically integrated cannabis company, will expand to two states after closing another round of private financing, bringing the total amount of capital raised to date to about $45 million.
The company is using the money to continue expansion plans in Oregon and Michigan and to launch operations in Massachusetts and Missouri.
“We have been incredibly methodical in developing strategic growth plans in multiple markets and combining that growth with efficient capital structuring and operational infrastructure,” says Vishal Rungta, president and CFO of C3.
“Our successful execution, meaningful profitability and cash generation, and focus on fundamentals has attracted a strong network of private investors who continue to support our growth initiatives. This is demonstrated by our most recent capital raise, where the company was able to secure an attractive interest rate with limited warranty coverage, a significant accomplishment relative to the pricing in the broader market.”
C3 operates a 36,000-square-foot cultivation and manufacturing center in Webberville (southeast of Lansing) that launched in 2019. This winter, the company plans to begin construction on a 70,000-square-foot cultivation center adjacent to the Webberville facility to help meet growing demand.
The company’s retail presence in Michigan includes five High Profile Boutique Cannabis dispensaries. C3 plans to open three more by early next year with the goal of opening up to 12 locations by the end of 2021.
In Oregon, C3 operates a 36,000-square-foot cultivation center in Portland and has begun construction on an extraction and distillation lab for that facility. The company also recently acquired an existing Portland-area dispensary and will rebrand it to High Profile Boutique Cannabis. The dispensary is expected to reopen in January.
In Massachusetts, the company has begun constructing a 37,000-square-foot cultivation and manufacturing facility. It will open its first High Profile Boutique Cannabis dispensary in Berlin, Mass. next year. The company has secured two other retail locations in the state and expects to have them licensed by the end of the year, giving the company the maximum three retail licenses allowed under Massachusetts state regulations.
In the Missouri licensing process, C3 was awarded six licenses – five retail and one manufacturing. Construction on the full set of licenses will begin this quarter with operations slated to begin in the first half of 2021.
The company has also expanded its leadership team by hiring Samip Shah as COO. He was formerly CEO of Clear Medical Imaging, where he was responsible for the overall management and growth of a network of retail health centers across southwest Ontario, Canada.
While in that role, he doubled clinic revenue in less than three years, restructured the organization, built a leadership team, and expanded the organization from 60 to 120 employees to support continued growth. He also has experience in digital business innovation due to his time at Digitas, a digital marketing and advertising firm.
“I couldn’t be more excited to be joining C3 at this pivotal time in the company’s growth and evolution,” Shah says. “Vishal, the other co-founders, Ankur Rungta and Joel Ruggiero, and the entire C3 team have done an incredible job building a fast-growing, profitable business in multiple cannabis markets. I see incredible opportunity to collaborate with the entire C3 team to take the business to the next level.”
C3’s brands include Cloud Cover Cannabis and Galactic Meds.
To read more about Ankur Rungta, who was featured in the 2020 Class of 30 in Their Thirties in DBusiness magazine, visit here.