Cannabis Social Tonic, Cann, Raises $5 Million To Expand Within California And Beyond

Cannabis

                                       Grapefruit Rosemary 

The recent backlash to alcohol may just push cannabis into the mainstream - and provide investors an opportunity. As an increasing number of Americans explore healthier ways to socialize, more adults are extending their alcohol detoxes beyond Dry January. The rise of the trendy sober curious movement, where people take a prolonged break from their boozy nights out for the sake of wellness, is being noticed by cannabis brands and investors alike. 

Los Angeles-based Cann, the first cannabis-infused social tonic, announced today a $5M seed funding round, co-led by Imaginary and JM10 Partners, to accelerate the growth of the product across California and to new states in 2020. According to Cann co-founder Luke Anderson, the microdose THC beverage “is uniquely designed to be approachable even for someone who has never previously considered cannabis as a part of their social lives — and appealing to that consumer is what it takes for a product to break the 'stoner' stigma and cross over into the mainstream.” Each Cann beverage contains a balanced mix of 2 mg of THC and 4 mg of CBD and offers a light and energetic social buzz, without the hangover.

                                      Grapefruit Rosemary 

Having secured leading partners across retail, technology, and cannabis, Cann will use the funding to support rapid growth into new legal state markets, as well as expand its production capacity, broadening and accelerating product development. The $5 million investment marks the first cannabis-focused position for Imaginary, which has invested in commercially successful direct to consumer brands such as Glossier, Skims, Everlane, Reformation and Daily Harvest. Additionally, JM10 Partners will expand its cannabis portfolio, adding to a lineup of cannabis brands with mainstream success, including celebrity-endorsed CBD brand Lord Jones. 

This investment comes at an opportune time as momentum for the cannabis beverage industry has steadily gained traction in the past two years. According to data from the cannabis analytics platform Headset, the cannabis beverage market has doubled in sales, jumping from just under $1.5 million in 2017 to upwards of $3 million by 2019. Better yet, recent beverage reports project that the global cannabis beverages market size will be valued upwards of $2 billion by 2026. 

Read More at source: Forbes

Image Source: Forbes