SEATTLE--(BUSINESS WIRE)--Seattle-based cannabis retailer Have a Heart has closed the largest private financing for a pure-play U.S. retail cannabis company to date. The $25 million series A round was led by private, accredited investors with significant cannabis and technology industry experience.
“Our growth outpaced our ability to organically fund our expansion,” said Ryan Kunkel, Have a Heart’s President and Chief Executive Officer. “We’ve found a financial partner with significant experience in applying capital to help growth companies scale. Having the financial support and management stewardship of this team will help us execute our vision more rapidly and broadly.”
Founded in 2011, Have a Heart started 2018 with five operating locations in Washington state.
The success of its Washington operations provided healthy expansion capital to pursue other markets, and its high application win rate – together with growth through acquisitions – generated greater capital needs for store buildout and working capital.
Have a Heart now has more than fifteen retail licenses across five states: Washington, Hawaii, Oregon, California and Iowa. The company has more than eighteen applications pending, including in five additional states. In addition, it has more than twenty sites under negotiation with potential merger partners in another four states.
“Entrepreneurs can reliably start, grow and finance their businesses in Washington,” Kunkel said. “The state has the best people, leaders, capital, and business and legislative climate for companies to start and become national and world leaders.”
Cautionary Note Regarding Forward-Looking Information
This press release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Have a Heart with respect to future business activities. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and include information regarding: (i) expectations regarding the size of the U.S. cannabis market (ii) the ability of the Company to successfully achieve its business objectives, (iii) plans for expansion of Have a Heart, and (iv) expectations for other economic, business, and/or competitive factors.
Investors are cautioned that forward-looking information is not based on historical facts but instead reflect Have a Heart management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Have a Heart believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the potential impact of the announcement of the going public transaction on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; and in particular in the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; adverse changes in the public perception of cannabis; decreases in the prevailing prices for cannabis and cannabis products in the markets that the Company operates in; adverse changes in applicable laws; or adverse changes in the application or enforcement of current laws, including those related to taxation; the inability to locate and acquire suitable companies, properties and assets necessary to execute on the Company's business plans; and increasing costs of compliance with extensive government regulation. This forward-looking information may be affected by risks and uncertainties in the business of Have a Heart and market conditions.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Have a Heart has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Have a Heart does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
No securities regulatory authority has in any way passed upon the merits of the proposed transactions described in this news release or has approved or disapproved of the contents of this news release.
About Have a Heart
Have a Heart, founded in Seattle, Wash., in 2011, owns and operates five licensed cannabis retail locations in Washington with 12 other locations in California, Iowa, Hawaii, Oregon and Ohio. The company has robust plans to expand nationally. Headquartered in Seattle, Have a Heart employs more than 400 people across the United States. The company recently established one of the industry’s first agreements with organized labor, the United Food and Commercial Workers International Union (UFCW). Have a Heart is recognized for its support of legislation to promote the safe and compliant growth, manufacturing, distribution and consumption of cannabis in states that have made it legal.
A listing statement describing Have a Heart and prepared in accordance with the policies of the CSE will be available on SEDAR at www.sedar.com.