Medical cannabis firm AltMed lands $35.4 million to bolster US, international growth
Alternative Medical Enterprises, a multistate medical marijuana producer and dispensary operator, has secured $35.4 million in a private placement financing from a Pennsylvania-based investment group.
The massive investment will allow the Sarasota, Florida-based firm to launch a major expansion in the United States and internationally, said Matthew Duffy, president and chief operating officer of the firm, which also goes by AltMed.
“This really puts us in a strong position and gives us the working capital we need to fuel our growth and really dial in to make our processes event more efficient,” Duffy told Marijuana Business Daily.
“As we execute our strategy, I think the options that open up will be very significant.”
MainLine Investment Partners led the financing deal, which included other unidentified investors, according to a new release. The Wynnewood, Pennsylvania-based firm’s portfolio includes a mix of real estate assets, investment funds and a wealth management arm.
As AltMed pursued the financing round, Duffy said, the company considered a number of investment partners and had an option to take the firm public.
“We decided that MainLine was by far the best approach to take because they really shared the same vision as we do for the future of medical cannabis,” Duffy said.
Most immediately, the funds will be used to expand the firm’s presence in Arizona, where it operates an indoor growing facility and is preparing to open its first medical marijuana dispensary.
Duffy said a portion of the capital also will be used to grow its MUV brand of cannabis products, which includes transdermal patches, creams and inhalers, nationally and internationally.
Lastly, Duffy said, the financing will also be used to build out the company’s footprint in Florida, where the firm operates a cultivation facility and expects to have six dispensaries open soon.
Florida has roughly 100,000 patients who qualify for medical marijuana. Duffy expects to open as many as 25 dispensaries with the new capital but will be “watching the pace of the market” to determine how quickly to ramp up expansion.
AltMed landed a $1.5 million equity investment from CannaRoyalty in 2015. The Canada-based firm said the post-money valuation of the MainLine financing deal represents a 215% boost in value for shareholders of CannaRoyalty, which trades as CRZ on the Canadian Securities Exchange.