Connecticut Innovations, the state’s quasi-public venture arm, has invested $1.25 million in a Colorado recreational marijuana company, a move that is being touted as the first investment made by a state entity into a cannabis business.
Connecticut Innovations (CI) recently invested $1.25 million in 1906, a recreational cannabis pills company moving its headquarters to the state.
“CI’s investment in 1906 is a major milestone for the cannabis industry — institutional investors don’t need to wait on the sidelines for changes to federal laws before they participate in the cannabis market,” said 1906 CEO Peter Barsoom.
Connecticut Innovations Vice President of Marketing Lauren Carmody said the investment closed in February.
According to the company’s website, 1906 specializes in fast-acting pills made up of plant-based medicines and low doses of THC and CBD. The company currently has six different variations of the supplement it sells at dispensaries in Arizona, Colorado, Illinois, Massachusetts and Oklahoma.
Officials from CI said they decided to invest in 1906 because of the company’s leadership in the cannabis sector, its strong revenue growth and support of social justice initiatives.
1906 also took investments from Arcview and Merida in this recent round of funding.
Following the investment, 1906 is moving its headquarters to Connecticut and is currently in the process of scaling up its employment count and presence in the state. It’s not clear where they will occupy space.
“The investment from CI will help us grow our business in the state and squarely positions 1906 at the center of the cannabis movement in the Northeast at exactly the right time. We are excited to bring 1906 and our products to Connecticut,” Barsoom said.
Caromody said 1906 has already submitted general lottery applications to open up a facility in the state, though it was not immediately available for which business types.
“This investment will help accelerate the company’s ambitious plans for growth and establish 1906 as the first of many cannabis industry leaders based here in Connecticut,” Carmody said.