News

Sharp raises over $75MM for cannabis companies in 3rd quarter

Stephen Miles
October 18, 2021

Sharp Capital Advisors, the pre-eminent investment bank focused on providing M&A and private capital market advisory services to the global cannabis sector, recently advised Organic Remedies MO ("ORMO") on its $25MM equity raise and Aeriz on its $50MM debt raise.

ORMO is a collaboration between Pure Penn and Organic Remedies - two privately-held, successful licensed operators from Pennsylvania - to construct and operationalize cultivation, manufacturing, and three retail facilities in Missouri. JW Asset Management and Entourage Effect Capital provided all of the institutional capital for the raise. ORMO expects to be fully operational during the 4th quarter of 2021.

Sharp identified and approached over 200 institutional equity investors with the ORMO opportunity. After fielding multiple investment proposals, the sponsors at ORMO selected JW Asset Management and Entourage Effect Capital based on their deep sector expertise and prior success backing similar plays.

Aeriz is the country's largest aeroponic grower of cannabis, with sizeable cultivation, distribution, and retail operations in Illinois, Arizona, and California. Ultimately, Aeriz received a $50MM senior secured debt commitment from Green Ivy, an affiliate of Chicago Atlantic. Proceeds from the new credit facility will be utilized to complete ongoing cultivation expansions across all of its markets and to selectively pursue accretive tuck-in acquisitions.

Sharp advised Aeriz on how to orchestrate a competitive process amongst approximately 40 prospective cannabis lenders to ensure the best long-term partner at the best possible terms currently available in the marketplace.

In the same timeframe, Sharp has provided advisory services to multiple companies, helping them determine the most practical and efficient next steps to achieve their growth goals. Our current projects include two sell-side engagements representing industry leadings brands and a significant capital raise for one of the premier cultivators in California.

Authors:
Rebecca Hawkinson
Colin Campbell
Tom Lesch