Cannabis Brand 1906 Secures $18 Million in Series A Funding to Expand Adult-Use Retail Operations

On October 28, 2019, VCBeat (WeChat ID: vcbeat) learned that the U.S. cannabis brand 1906 (1906 New Highs) announced the completion of an $18 million financing round. The round was led by Navy Capital, with participation from a consortium of institutions, high-net-worth individuals, and existing investors in 1906.

This round of financing will be used to expand its retail operations in the adult markets of Illinois, Massachusetts, and Michigan, positioning 1906 as one of the leading brands in the emerging adult-use cannabis sectors in these regions.

1906 is one of the most innovative brands in the cannabis industry, pioneering breakthrough functional formulations of cannabis and botanical medicines. 1906 supports medical cannabis research and invests a portion of its revenue in clinical trials and in educating healthcare professionals.

1906 has recently launched “Drops,” a compressed tablet (pill) that represents the latest advancement in cannabis medicine. After years of research and testing, Drops is the only pill on the market that combines medicinal cannabis with botanicals to achieve the desired effects. Like 1906’s previous products, Drops utilizes a patented fast-acting technology—lipid microencapsulation—that enables users to experience rapid onset of effects within 20 minutes of ingestion.

Drops contain THC, CBD, and herbal ingredients. Different compositions and dosages yield varying effects. Meticulously formulated, Drops offer six plant-based, fast-acting benefits:

1. Genius Drops: The optimal blend of five botanicals, caffeine, and cannabis to enhance cognitive function. (2.5mg THC / 2.5mg CBD)

2. Chill Drops: A unique blend of high-CBD, THC, and botanicals to promote relaxation. (5mg THC / 25mg CBD)

3. Go Drops: A potent blend of cannabis, caffeine, and three botanicals to boost energy. (5mg THC / 5mg CBD)

4. Bliss Drops: A blend of four botanicals and cannabis that promotes a happy mood. (5mg THC / 5mg CBD)

5. Love Drops: A refined blend of five aphrodisiac herbs and cannabis, designed to enhance libido. (2.5mg THC / 2.5mg CBD)

6. Midnight Drops: A thoughtful blend of botanicals and cannabis to promote sleep. (5mg THC / 5mg CBD)

In 1906, founder Peter Barsoom stated, “With the advent of Drops, cannabis medicine has finally arrived. For a long time, consumers and patients had to rely on smoking cannabis to achieve specific effects. After years of research and development, we have finally brought healthier and more effective products to the cannabis market. We are introducing a new cognitive enhancement experience for the first time, called Genius. We believe this will ultimately dispel the Reagan-era propaganda that cannabis dulls the brain.”

Sean Stiefel, Portfolio Manager at Navy Capital, stated, “Navy Capital’s investment in 1906 reflects our belief that it is one of the best brands in the country. The company’s fast-acting formulations represent the cutting edge of cannabis therapeutics, which has deeply impressed us. Our investment will help 1906 become one of the leading brands in the new adult-use markets in Illinois, Massachusetts, and Michigan.”

Navy Capital is a venture capital firm founded in 2014 and headquartered in New York, USA. It primarily focuses on early-stage venture investments, aiming to identify top-tier companies across key verticals of the global cannabis industry. These verticals include consumer goods, healthcare, technology, industrial, and agriculture.

(Compiled by: Wang Fang)