Michigan-based cannabis company, Stash Ventures, acquires Cloud Cannabis, one of the State’s leading cannabis dispensary chains, in strategic move to grow its cannabis portfolio
MOUNT PLEASANT, Mich. (Feb. 1, 2024) — Cannabis company Stash Ventures, the founding parent company of Timber Cannabis Co., High Minded and High Minded Creations, announced today that it has finalized the acquisition of Cloud Cannabis’ retail locations throughout the State of Michigan. The move marks a major expansion for Stash Ventures in the cannabis market.
Under the acquisition terms, Cloud Cannabis will operate under its current brand name with plans for additional expansion in the near future, while the previous owners of Cloud Cannabis will retain their cultivation, extraction, processing and manufacturing operations. The choice to uphold the Cloud Cannabis brand preserves Cloud Cannabis’ already well-established market position and helps ensure the transition will be seamless for customers. Furthermore, this acquisition allows Stash Ventures to expand its influence in the cannabis space and strengthens the overall business strategies of both parties as they continue to invest in the Michigan cannabis market.
Stash Ventures is one of the largest cannabis investors in Michigan. As a vertically integrated cannabis company, Stash Ventures has access to growing, processing and retail sale licenses, and has quality control from seed to sale. Through its notable brands Timber Cannabis Co., High Minded and High Minded Creations, Stash Ventures currently has facilities in Mount Pleasant, Owosso and Sturgis, Michigan, and the acquisition of Cloud Cannabis will allow the company to grow its customer base throughout the state.
“Growing our investment in the State of Michigan is important to us, and we’re proud to be able to do this with such a well-established brand like Cloud Cannabis,” said Scott Moorehead, CEO of Stash Ventures. “The merger also presents an exciting opportunity for our High Minded and High Minded Creations products as there will be expanded retail outlets for customers to find our exceptional flower and products. As an experienced retail operator, we can assure that this acquisition does not take our eye off of continuing to make Timber Cannabis Co. a premiere customer and employee experience as well. This is an exciting start to 2024 for Stash Ventures!”
“This transaction was complex and has taken many months to ensure that the transition is healthy for the cannabis industry, both companies and the employees and customers impacted by the acquisition,” said Katie Wiley, Chief Legal and Strategy Officer of Stash Ventures. “We appreciate the diligent work of the CRA and all local municipalities involved in the licensing process associated with these retail locations, as any transaction of this magnitude requires transparency and appropriate oversight.”
John McLeod, Co-Founder of Cloud Cannabis, commented, “This transaction with Stash Ventures represents a pivotal strategic decision for our team. We recognized an extraordinary opportunity to orchestrate a mutually beneficial financial and operational outcome for both parties, while enabling us to sharpen our focus on our established wholesale operations. This move is a testament to our commitment to our stakeholders and aligns with our vision for the future.”
The acquisition was carried out by law firms Honigman LLP as counsel for the buyers and Foley & Lardner LLP and Thomas Legal as counsel for the sellers. On the real property portion of the transaction, Anthony Trucano of Jubilee Property Group represented the buyers. Additionally, investment banking firm Houlihan Lokey served as financial advisor to the sellers in connection with the transaction. With the combined expertise of both Stash Ventures and Cloud Cannabis, the transaction is set to create and maintain an influential presence in the cannabis sector.