Massachusetts-based MariMed, a multistate cannabis operator, is entering the hemp-derived CBD business with a $30 million investment in a Kentucky company.
The company, GenCanna, has contract farmers to grow hemp to its specifications as well as processing facilities to make CBD extracts, concentrates, isolates and other products.
GenCanna plans to use the investment to expand its cultivation and processing operations.
Under the deal:
- GenCanna will become MariMed’s supplier of hemp-derived CBD, and the two companies will develop CBD products and brands together.
- MariMed (OTCQB: MRMD) will create a business unit focused on CBD consumer products.
- MariMed will distribute hemp-derived CBD products, but they will not be sold in its cannabis dispensaries.
- MariMed can convert its investment in GenCanna into a one-third equity position in the company.
- All hemp processing will take place within GenCanna’s facilities.
MariMed, a vertically integrated operator, has facilities in Delaware, Illinois, Maryland, Massachusetts, Nevada and Rhode Island.
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