Surterra Wellness Secures $100 Million Series D Funding and Files IPO Prospectus Following Acquisitions of Two Peers

Recently, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that medical cannabis company Surterra Wellness has completed a $100 million Series D financing round. Investors in this round include Ed Brown, former CEO of Patrón Spirits, among others. The company plans to use the proceeds for acquisitions and corporate operations.

Furthermore, Surterra announced that it would appoint two new directors to help formulate the company’s strategy: Ed Brown, a participant in this round of financing, and Kevin Fisher, founder of the cannabis company New England Treatment Access (NETA) and the biopharmaceutical group Molecular Infusions. NETA and Molecular Infusions (Mi) were recently acquired by Surterra.

Wrigley stated, “We warmly welcome Ed and Kevin to the Surterra Board of Directors. Ed’s unique expertise in the alcohol, beverage, and consumer packaged goods industries, combined with Kevin’s extensive experience in the cannabis business and market development, significantly strengthens our leadership team.”

Since its inception, Surterra has completed six rounds of financing, raising a total of over $350 million. Specifically, the company closed a $10 million Series A round in December 2015, a $10.3 million Series B round in December 2016, a $5 million venture financing round in May 2017, a $65 million Series C round led by individual investor William Wrigley in August 2018, and a $165.4 million debt financing round in April 2019.

Surterra, founded by Jake Bergmann and Wes Van Dyk on January 2, 2014, is one of the fastest-growing health companies in the United States, headquartered in Atlanta, Georgia. The company cultivates, produces, and processes medical cannabis, focusing on developing natural, cannabis-based health products by combining natural cultivation techniques with novel ingredient extraction technologies. It is committed to providing individuals with the safest and most effective treatment solutions.

Surterra is striving to reshape perceptions of nature-based health solutions by partnering with companies that prioritize patient health and safety. By leveraging specialized expertise in medicine, science, and agriculture, Surterra develops natural cannabis products that enable patients to alleviate symptoms and restore their health in the safest and most effective manner possible. Additionally, Surterra operates a cannabis dispensary.

Over the past few months, Surterra has experienced a period of rapid growth. By significantly increasing investments in human resources, science, technology, and innovation-driven development, the company has expanded aggressively and transformed into an interstate medical cannabis and health services provider with well-recognized brands and substantial revenue. Since Wrigley assumed the role of Chief Executive Officer in November 2018, Surterra has completed multiple mergers and acquisitions, expanded strategic partnerships, and achieved milestone accomplishments, including:

(1) Brand and Product Development. Surterra jointly launched the Coral Reefer brand with Margaritaville, led by Jimmy Buffett, reached an exclusive global licensing agreement with The Endless Summer brand, and will launch cannabis-infused edibles in Florida in the summer of 2019.

(2) Expansion of business coverage. Surterra acquired the Las Vegas-based Apothecary Shoppe, entering the Nevada cannabis market. The company also acquired NETA, headquartered in Massachusetts, opening up a fourth cannabis market in regions other than Florida, Nevada, and Texas, thereby becoming a world-class cannabis company. In addition, Surterra will enter the California market in the second half of 2019, launching brands such as Coral Reefer. The company already has 26 locations in Florida.

(3) Science, Technology, and Innovation. Surterra entered into a $100 million global licensing agreement for biosynthesis and a strategic licensing agreement with Intrexon, respectively, to advance the commercial production of cannabinoids via fermentation and to enhance cannabis seedling production efficiency in Florida by leveraging Intrexon’s next-generation plant cultivation platform. The company also acquired Mi to improve therapeutic outcomes and customer experience in cannabis treatment through its novel product distribution system.

(4) Leadership Team and Talent Acquisition. Surterra plans to expand its workforce from approximately 600 to 2,000 employees by the end of 2019.

Ed Brown is the former CEO of Patrón Spirits, the current Chairman of Clear Sports, and an angel investor. Under his leadership, Patrón Spirits, a manufacturer of ultra-premium distilled spirits, exported its products to more than 100 countries and islands worldwide.

NETA, founded in 2009 and headquartered in Massachusetts, operates a vertically integrated business spanning cannabis cultivation, production, processing, and sales. The company is dedicated to improving patients’ quality of life through personalized medical services and scientific and technological advancements in medical cannabis. NETA currently operates retail pharmacies in Brooklyn, USA, and Northampton, UK, while conducting the cultivation and processing of all its cannabis products in Franklin, Canada. The company boasts a world-class, 100,000-square-foot facility for cannabis cultivation, extraction, and the research and development of infusion technologies. NETA has launched more than 250 diverse products, including cannabis and other cannabis-derived items.

Mi is headquartered in Franklin, Massachusetts, USA. It is a patient-centric biopharmaceutical company. Leveraging its expertise in science, management, and commerce, the company is committed to delivering innovative cannabis-based therapies to help patients manage their conditions and improve their quality of life.

(Compiled by Tang Lulu)