February 20, 2018

Merida Capital Partners, a private equity fund targeting the cannabis industry, has made a $6 million investment in Kush Bottles, Inc. Kush provides packaging, supplies, vaporizers, accessories, and branding solutions for the regulated cannabis industry. Merida also will provide strategic guidance in helping Kush expand its product portfolio, build new distribution channels, and penetrate new legalized markets. According to Merida, the U.S. cannabis supply chain includes more than 5,000 cannabis growers, extractors, manufacturers, and retailers.

Nicholas Kovacevich, chairman and CEO of Kush Bottles, commented: “The Merida team’s deep understanding of the unique dynamics of the cannabis industry, strong industry networks and willingness to finance our growth will be invaluable as we exploit new opportunities and enter new markets. We plan to use this capital investment to expand our range of proprietary products to meet the needs of the industry, advance our M&A strategy to take advantage of consolidation in the industry and grow market share.”

Global Cannabis Market Broadening

According to figures cited in a recent Forbes report, while the U.S. is currently the leading driver of the legal marijuana market, that is expected to change as Canada, Germany, and other countries in Europe and Latin America implement or consider recreational and medical legalization. Those developments could push the global market to over $30 billion within a few years. Investors are cautious, however, as a Federal ban in the U.S. is still in place, with politicians and law enforcement officials resistant to embrace legalization.

Investments are also not limited to funds specializing in cannabis. GrowLife, Inc., a provider of hydroponic equipment, lighting, nutrients, media, and other grow supplies, just announced an equity financing deal with Chicago Venture Partners (CVP), a provider of capital to emerging and growth-stage small cap companies. Neither party in the deal is exclusive to the cannabis industry, with CVP having a broad portfolio of over 100 companies in energy, biotech, communications, and consumer products; and GrowLife’s hydroponic products are applicable to a wide range of indoor growing applications.

By David Nitchman, GAI Media