NorCal Cannabis raises $27.4 million to expand operations in Santa Rosa
NorCal Cannabis, a Santa Rosa marijuana firm with cultivation, manufacturing and retail delivery operations, has raised $27.4 million in additional private equity funding, the company said Wednesday.
The money will allow NorCal Cannabis to increase production and expand operations at its southwest Santa Rosa campus, where it currently has more than 100,000 square feet of marijuana canopy, company President Jigar Patel said.
The company plans to build a manufacturing facility on the site to produce and package a variety of cannabis products, from vaporizer cartridges to edibles.
“It’s a big deal for us and we’re really excited,” Patel said. “As our footprint grows, so does our ability to hire people from the community and add cannabis jobs in Santa Rosa.”
The company, which currently has nearly 500 employees, will also use the funds to expand its delivery service outside San Francisco and open 10 retail dispensary stores across the state, including one proposed in Santa Rosa, Patel said. It will also increase its capacity to run a specialized distribution operation to bring its products from its production facilities to its delivery depots and storefronts.
The lead investor was JM10, a private equity firm based in Boston. Other investment groups include Toronto-based Cannabis Growth Opportunity Corp. and Cresco Capital based in Dallas.
The funding brings the total amount raised by NorCal Cannabis since it was formed in 2015 to $50 million, according to the company.
Patel, an Occidental resident and Sonoma County Growers Alliance board member, co-founded NorCal Cannabis with Douglas Cortina, a former San Francisco real estate developer, who serves as chief executive officer.
NorCal Cannabis also announced a partnership with Eaze, a San Francisco marijuana delivery startup that created what’s become a widely used online platform connecting customers with dispensary storefronts and delivery services.