Canna Group, a US cannabis consulting firm, said it closed a financing round just one week after announcing the launch of a private equity fund targeting early-stage companies in the cannabis sector.
It was unclear whether the round was related to the company’s recently-launched private equity fund, Sugar Leaf Capital Fund I.
A company press release said the closed financing round could be used for opportunistic investments, working capital and expansion. Canna Group did not return requests for details from Agri Investor about the launch of the fund or the size of the raise in time for publication.
Canna had said in a previous press release that the Sugar Leaf fund would target companies operating in the emerging legal cannabis sector not directly participating in cannabis production. The company highlighted banking, grow systems, agricultural operations, software and tech, business services and biotech as key areas of interest for the fund.
Private equity is increasingly interested in cannabis data, tech, services and other areas that fall outside of the production or distribution of the drug. While subject to less regulation, and therefore less risk, companies that fill a support role in the cannabis market are primed to grow alongside legal marijuana consumption.
Cannabis-focused private equity groups, Phyto Partners and Casa Verde, have each made investments in companies that support the cannabis industry – Phyto into data company New Frontier Financials and Casa Verde into cannabis packager FunkSac.