In maturing cannabis industry such as various state markets in America, the issue of sustainable development is getting more attention. This, in turn, creates opportunities for companies that cater towards renewable and sustainable practices, similar to how many businesses take on a “green” brand to appeal to changing customer interests.
One private Californian company, Flow Kana, announced that it had secured a $125 million financing round – the largest in the country’s history as it seeks to expand it’s network of small, sustainable farms across the state.
“We strongly believe the cannabis industry is a catalyst for social change and are grateful to have found investors and partners aligned with this vision,” said Flow Kana CEO Michael Steinmetz. “Throughout our supply chain, partners and customers have all committed to the sungrown movement and are dedicated to building an industry that has a positive impact on the challenges that we confront in the world today.”
The deal was first announced in May 2018, where Gotham Green Partners alongside other private investors invested in Flow Kana to help accelerate their sustainable supply chain development. The premise would be centered around small, decentralized and renewable operated cannabis farms working together under a single supply chain. Overall, the company has raised around $175 million to date to operate within the Californian market.
“Since our initial investment, Flow Kana has continued to execute on its mission of developing a robust and inclusive California cannabis supply chain,” added Michael Henderson-Cohen at Gotham Green Partner. “We are excited to participate in this recent raise, which will enable the company to leverage its unique position in the Emerald Triangle and broaden its reach and message across the state.”
Flow Kana holds the distinction of being California’s number one flower brand, with much of its cannabis products grown in the world renown Emerald Triangle region spanning Mendocino, Trinity, and Humboldt. It’s an impressive achievement for a company that doesn’t grow any of its own product, rather acting as a conduit for many likeminded farms. According to Forbes, Flow Kana’s two partners came together when realizing the similarities behind traditional food distribution models as well as mass cannabis cultivation, with both negatively impacting the environment while not empowered small producers.
Some leaked documents suggest that management has told investors that the company could expect revenues of over $2 billion by 2022. In comparison, most analysts expect that 2018 revenue figures were in the figure of $27.5 million, which could imply a 73 times increase in revenue over a 3 year time period.
Flow Cana Company Profile
Flow Kana is a pioneer in the cannabis industry, creating the first sustainable, sungrown cannabis brand that embraces California values and the small independent farm ecosystem. Flow Kana partners with and gives scale to craft farmers in Northern California, who focus on beyond organic farming practices.
The company offers a range of distribution and white label services to a variety of licensed cannabis companies who share the company’s values to provide consumers with clean, compliant and sustainable products through delivery to licensed retail operators throughout California. – Flow Kana