Michigan-based Green Peak Innovations this week announced the closing of an oversubscribed mezzanine debt round worth over $30 million.
The Cannabis Capital Conference returns to Toronto April 17-18!
What Happened
The mezzanine debt round is in line with the company's plans to expand in Michigan and other states. Green Peak Innovations is the largest holder of "Class C" cultivation and processing licenses in the state, according to the company.
The company has a 60,000-square-foot headquarters facility in Windsor Township and R&D facility on Jolly Road. Green Peak said it plans to use the funding to expand its Windsor facility by up to two times its current size.
For its facility, Green Peak Innovations entered into a lease agreement with Innovative Industrial Properties, Inc. (NYSE: IIPR). The real estate investment fund acquired the property located in Dimondale, Michigan for $5.5 million.
Why It's Important
Michigan legalized recreational marijuana in December after voters passed Proposal 1 in the 2018 midterm election.
Marijuana Business Daily estimates the recreational market along could be worth between $1.4 and $1.7 billion within several years, which would make it one of the largest in the country. With the latest funding round, Green Peak Innovations is positioning itself to become one of the market leaders in the Great Lakes State.
What's Next
Green Peak Innovations has plans to open 19 provisioning centers under its Skymint brand. The first centers are expected to open within the next few months.
Related Links:
What Cannabis Retailers Can Learn From Marie Kondo
2 Stocks That Could Benefit From Marijuana Legalization In Michigan
See more from Benzinga
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.