SOL Global Investments has completed an investment in Common C Holdings, a Michigan-based, Delaware limited partnership that provides support services to state-compliant licensed cannabis operators. SOL Global invested USD$20 million in Common C Holdings, acquiring 1.4M Class B Common Units.
Common C Holdings, which was formed in 2018, provides support services, financing, intellectual property licensing, accounting and professional coordination, and real estate support services to state-compliant licensed cultivation, processing, and retail cannabis operators in Michigan. The Michigan cannabis market has shown significant growth and strength in recent months and has become one of the top cannabis markets in the United States:
In the month of July, Michigan’s cannabis revenues were over $170mm, which represents over 500% growth over the last 18 months.1
Expected revenue in the state in 2021 will be over $1.5B and is expected to grow to $4B in the next 3-5 years.
Some of the key client assets Common C Holdings supports include:
Over 170,000 square feet of cultivation in current production, producing over 60,000 pounds in annual production (scalable up to 1,200,000 square feet, subject to additional licensing requirement); and 5 Retail operations and scaling to over 12 stores by 2022.
Common C Holdings takes a deliberate, people-first approach to its business strategy. With the completion of this financing, Common C Holdings in concert with its licensed partners, is well-positioned to capture a significant portion of the $3B Michigan cannabis market.
“We reviewed a number of Michigan opportunities over the last 24 months knowing it was a state we wanted to be in. Common C Holdings is the perfect fit for our portfolio,” said SOL Global CEO, Andy DeFrancesco. “This investment reminds me of many of our previous winning bets in the space, where we were able to identify a business in hypergrowth phase with world class management ready to scale. Common C Holdings simply checked all of the boxes and SOL Global is proud to have led this round of financing.”