Alternative Medical Enterprises, a multistate medical marijuana producer and dispensary operator, has secured $35.four million in a personal placement financing from a Pennsylvania-based funding group.
The large funding will permit the Sarasota, Florida-based firm to launch a serious enlargement within the United States and internationally, stated Matthew Duffy, president and chief working officer of the firm, which additionally goes by AltMed.
“This really puts us in a strong position and gives us the working capital we need to fuel our growth and really dial in to make our processes event more efficient,” Duffy advised Marijuana Business Daily.
“As we execute our strategy, I think the options that open up will be very significant.”
MainLine Investment Partners led the financing deal, which included different unidentified buyers, in accordance to a brand new launch. The Wynnewood, Pennsylvania-based firm’s portfolio consists of a mixture of actual property belongings, funding funds and a wealth administration arm.
As AltMed pursued the financing spherical, Duffy stated, the corporate thought-about quite a lot of funding companions and had an choice to take the firm public.
“We decided that MainLine was by far the best approach to take because they really shared the same vision as we do for the future of medical cannabis,” Duffy stated.
Most instantly, the funds might be used to increase the firm’s presence in Arizona, the place it operates an indoor rising facility and is getting ready to open its first medical marijuana dispensary.
Duffy stated a portion of the capital additionally might be used to develop its MUV model of cannabis merchandise, which incorporates transdermal patches, lotions and inhalers, nationally and internationally.
Lastly, Duffy stated, the financing may even be used to construct out the corporate’s footprint in Florida, the place the firm operates a cultivation facility and expects to have six dispensaries open quickly.
Florida has roughly 100,000 sufferers who qualify for medical marijuana. Duffy expects to open as many as 25 dispensaries with the brand new capital however can be “watching the pace of the market” to decide how shortly to ramp up enlargement.
AltMed landed a $1.5 million fairness funding from CannaRoyalty in 2015. The Canada-based firm stated the post-money valuation of the MainLine financing deal represents a 215% increase in worth for shareholders of CannaRoyalty, which trades as CRZ on the Canadian Securities Exchange.