CHICAGO--(BUSINESS WIRE)--Salveo Capital, an alternative investment firm specializing in the legalized cannabis space, today announced it has acquired a minority equity interest in Flow Kana, the premier sustainable sungrown cannabis provider embracing Northern California’s independent craft farm ecosystem. Financial terms of the transaction were not disclosed.
Founded in 2015, Flow Kana is focused on partnering with and giving scale to independent farmers who cultivate under full sun, sustainably, in small batches. The company recently opened the first phase of operations at its 87,000 sq. ft. facility in Mendocino County, The Flow Cannabis Institute, which offers a wide range of processing, co-packing, white label, and distribution services to a growing list of partner brands, dispensaries, distributors, and manufacturers in California. Salveo Capital’s investment will further support Flow Kana’s focus on expansion of its services to support the Northern California network of independent farmers and to build capacity at The Flow Cannabis Institute to manufacture premium cannabis oil for distribution and sale to companies making specialty products such as edibles, topicals, tinctures, and more.
“Flow Kana has quickly scaled its business in a relatively short time and is a perfect example of how the cannabis industry is evolving,” said Michael Gruber, a Managing Partner at Salveo Capital. “Flow Kana’s dedication and partnership with local farmers in Mendocino and Humboldt counties in California is critical to their success and a testament to their values. We are very eager to begin working alongside the entire Flow Kana management team as we continue to support the company’s strong momentum.”
“As cannabis comes out of prohibition, we are thrilled to be aligned with Salveo, and other value-add investors, who are focused on the long-term vision of building the cannabis industry in a way we can be proud of,” said Michael Steinmetz, Flow Kana’s co-founder and Chief Executive Officer. “The future of cannabis is in the hands of consumers who treat cannabis with an appreciation for all things wholesome and organic. Our partner farms use only organic methods and are true stewards of the land who have spent their lives balancing a unique and harmonious relationship between the farm, the genetics and the terroir. Cannabis cultivated this way must be embraced and adopted by the cannabis community at large, especially as large-scale industrialized production becomes a reality in a post-legalization era.”
Salveo Capital's primary investment focus is on high-growth, ancillary service providers to the cannabis industry - rather than more highly-regulated businesses that “touch the plant.” The firm is currently investing capital out of its first private equity fund (“Fund I”) and is targeting a $25 million close. Salveo is seeking to rapidly scale its platform with a goal of reaching $100 million of committed capital by 2019. In addition to Flow Kana, Salveo Capital has completed seven investments thus far including Baker, Front Range Biosciences, Headset, Purissima, Hiku (formerly Tokyo Smoke), Treez and Wurk. Legalized cannabis is a $9 billion market in North America and, according to industry research, is expected to reach an estimated $22 billion by 2020. From an international perspective, various countries around the world including Australia, Germany and Spain are legalizing marijuana, while others including Canada, Israel and The Netherlands are permitting exportation.
About Flow Kana
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 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. For more
information, please visit www.flowkana.com,
www.flowcannabisinstitute.com,
and connect with us on Facebook,
Twitter
and Instagram.
About Salveo Capital
Launched
at the end of 2016, Salveo Capital is an alternative investment firm
specializing in the legalized cannabis space, particularly ancillary
businesses. Salveo Capital's approach is to bring an institutional
quality discipline to company vetting, investment structures and
portfolio management. The Firm is committed to shaping the early-stage,
yet rapidly growing, industry by providing funding and development to
companies with the will and vision to be the future faces of legalized
marijuana. As cannabis legalization spreads, Salveo Capital seeks to
build long term sustainable companies and support innovative
technologies, products and services to help address the unique
requirements of the industry. The firm is based in Northbrook, Illinois,
and with vertical industry executives and cannabis operating advisors
across the country, including key markets of California and Colorado.
For more information, please visit www.salveocapital.com.
