Strainz Raises $8mm to Launch Cannabis Operations in Colorado, Nevada and Washington

Strainz, based in Nevada, has raised $8mm and announced its first three states of operations, including Colorado, Nevada and Washington. It named its partners, the Bronnor Corporation in Colorado and DB3 in Washington, both of which will manufacture products under the Strainz name. The company, with multiple licenses in Nevada, will launch its products and expand the company’s footprint in its home state. Almost $6mm of the money raised came from 17 investors in a debt financing that included warrants.

Senior management includes CEO Hugh Hempel and Troy Herbst.  Hempel has been a vocal advocate for medical cannabis, as his twin daughters suffer from a rare disease, Niemann Pick Type C,  and have benefitted from its use. Hempel gave a moving TEDx Talk, “Why I Changed My Mind About Medicinal Cannabis”, a year ago. He worked with technology companies IBM, Computervision, Apple and Netscape early in his career. Herbst’s brother and father own gaming licenses, his family owns and operates over 100 convenience stores, lube, and car wash facilities in the Southwest, primarily in Nevada, and he is a part-owner of The Clinic Nevada, which is expected to open soon.

Many cannabis companies have terrific product lines but their products may only be available in a single state, as they find scaling to be an arduous and highly capital intensive process.

Hugh Hempel

Hugh Hempel, CEO of Strainz

We want to assist exceptional cannabis companies looking to expand nationally in multiple legal markets where our strategic partners have world-class production facilities.

Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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