Connecticut Innovations, the state’s quasi-public venture capital arm, has invested $1.25 million in 1906, a Colorado adult-use cannabis company that is moving to the Constitution State, the Hartford Business Journal reports. The investment is reportedly the first investment made by a state entity into a cannabis business.
1906 CEO Peter Barsoom called the investment, which closed in February, “a major milestone for the cannabis industry.”
“…Institutional investors don’t need to wait on the sidelines for changes to federal laws before they participate in the cannabis market.” – Barsoom to the Journal
1906 produces pills comprised of plant-based medicines and low doses of THC and CBD. The company currently has six different variations of the product at dispensaries in Arizona, Colorado, Illinois, Massachusetts, and Oklahoma, the report says.
Connecticut lawmakers approved cannabis reforms last June but sales have not yet commenced. Commissioner for the Department of Consumer Protection Michelle Seagull said in September that while officials had expected adult-use sales to start by the end of this year, the timeline may be delayed.
Officials from Connecticut Innovations said they decided to invest in 1906 because of the company’s leadership in the cannabis space, its strong revenue growth, and support of social justice initiatives. The firm also saw investments from Arcview and Merida in the funding round, the report says. 1906 also plans to use the funds to scale up its employee count and presence in the state.
Connecticut Innovations Vice President of Marketing Lauren Carmody said the “investment will help accelerate the company’s ambitious plans for growth and establish 1906 as the first of many cannabis industry leaders based here in Connecticut.”
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