Connecticut Innovations, the state’s quasi-public venture capital arm, has invested $1.25 million in 1906, a Colorado adult cannabis company that is moving to the constitutional state, the Hartford Business Journal reports The investment is said to be the first investment by a state-owned entity in a cannabis business.
1906 CEO Peter Barsoom called the investment, which closed in February, “a significant milestone for the cannabis industry.”
“… Institutional investors don’t have to wait on the sidelines for changes to federal laws before participating in the cannabis market.” – Barsoom in the newspaper
1906 produces pills that include herbal medicine and low doses of THC and CBD. The company currently has six different variations of the product in dispensaries in Arizona, Colorado, Illinois, Massachusetts and Oklahoma, according to the report.
Connecticut lawmakers passed cannabis reforms last June, but sales have yet to begin. Department of Consumer Protection Commissioner Michelle Seagull said in September that while officials expected adult sales to begin later this year, the timeline could be delayed.
Connecticut Innovations officials said they decided to invest in 1906 because of the company’s leadership in the cannabis space, its strong revenue growth and support for social justice initiatives. The company also saw investments from Arcview and Merida in the funding round, the report said. 1906 also plans to use the funds to increase its headcount and presence in the state.
Connecticut Innovations Vice President of Marketing Lauren Carmody said, “The investment will help accelerate the company’s ambitious growth plans and establish 1906 as the first of many cannabis industry leaders based here in Connecticut.”
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TG Branfalt
TG joined Ganjapreneur in 2014 as a news editor and began hosting the Ganjapreneur podcast in 2016. He is based in upstate New York, where he also teaches media studies at a local university.