Cannabis beverage startup Cann has raised $27 million as it expands into Canada.
The company, which markets itself as a fun alternative to alcohol, is bulking up on funding as it brings the product into Canada. The move is Cann’s first international market expansion.
The startup announced earlier this week that it has raised $27 million in Series A funding from some new and unnamed institutional investors.
Past investor includes Imaginary Ventures and many celebrity influencers including stars like Nina Dobrev, Adam Devine, Zoey Deutch and Rosario Dawson, among others. The company closed a $5 million seed round back in 2020.
The company has low-THC drinks that consumers can drink a few of without getting way too stoned. The standard offering is an 8 ounce can that packs 2mg of THC and 4mg of CBD. A 6-pack of the 8 ounce beverages goes for $20 and can be even pricier with steep state Cannabis taxes.
“Overall, the industry is hurting. They’re not meeting the growth expectations that they set out,” says co-founder Jake Bullock. “What’s happening on delivery platforms is not connected with the mainstream. You have folks that are not going to smoke or are not going to inhale vapor… [and so] you’ve seen a much slower adoption of cannabis as a mainstream, mild intoxicant.”
Cann is hoping to break through the legal obstacles surrounding distribution of cannabis-derived intoxicants and overcome investors growing skepticism around the viability of cannabis as a business.
