Cannabis Business Info Since 2011
Cannabis Business Info Since 2011
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Newly rebranded California-based marijuana operator Eaze raised $10 million to acquire select assets of Eaze Technologies, its predecessor company, to fund the reopening of 70 Eaze and Green Dragon locations across California, Colorado, Florida and Michigan.
The now-defunct Eaze Technologies, which purchased Denver-based Green Dragon about three years ago, announced in October that it would close its Colorado and Florida operations.
Billionaire Jim Clark, founder of defunct tech company Netscape, provided the funding, which was announced Tuesday, and now has controlling ownership of the new entity, Eaze.
CEO Cory Azzalino said the company does not intend to reimagine its business model, which it shifted four years ago from a delivery platform to a plant-touching entity.
“The focus going forward will be continued expansion in Florida, expanding the delivery footprint in California and launching delivery in Colorado,” Azzalino told MJBizDaily in an interview Tuesday.
“Denver was one of the most popular areas for alcohol delivery, so I assume there will be natural demand, especially as you get out more toward the suburbs.”
Florida-based attorney Paula Savchenko, founding partner of Cannacore Group and PS Law Group, said mergers and acquisitions in the marijuana industry are likely to continue.
“This is just the beginning,” she told MJBizDaily of the Eaze announcement.
“We were happy to see Eaze and Green Dragon raise additional funding and further expand their operations.
“Delivery in Colorado is a great plan, as Colorado is one of the strongest markets in the United States.”
The Series B funding will allow Eaze to:
The company will post available jobs on Nov. 15 and hire as many people as possible over the next 45 days, Azzalino said.
Eaze also plans to expand its Florida production capacity from 32,000 square feet to 64,000 square feet.
Azzalino said that plan had been in the works but wasn’t executed because an expected power upgrade was delayed because of the recent hurricanes in Florida.
Azzalino said he’s disappointed that Florida voters rejected Amendment 3, which would have legalized adult-use cannabis in the nation’s largest medical-only market.
“Amendment 3 would have been meaningful for us and the rest of the industry,” he said.
Savchenko said the industry is confident Florida voters will approve adult-use marijuana during the next ballot initiative, so operators including Green Dragon are gearing up to be ready for it.
“The medical market continues to grow, and there is still not enough medical cannabis to meet market demand,” Savchenko said.
“I believe that Amendment 3 not passing in Florida will be positive for Green Dragon because they are working hard with their expansion initiatives to meet medical market needs and ramp up for recreational.”
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During an interview with MJBizDaily shortly after the October announcement that Eaze and Green Dragon were shutting down, Richard Proud, the CEO of marijuana multistate operator iAnthus Capital Holdings, said he believed Eaze would launch a “2.0 version.”
“Despite the results of last week’s vote on Amendment 3 in Florida, we are not surprised that Eaze investors are still excited about growing their store base in this market,” Proud told MJBizDaily on Tuesday.
“Florida remains one of the strongest medical cannabis markets in the United States, which is why iAnthus has remained so dedicated to building and expanding our presence there.”
Eaze’s new capital also will pay for:
Eaze also is negotiating a new collective bargaining agreement with the United Food and Commercial Workers, which in 2022 led a picket line of former cultivation workers outside Green Dragon’s grow facility in Denver.
The employees alleged the facility was unsafe and an unhealthy workplace because of mold issues; staff also complained about low wages.
Clark foreclosed on Eaze in May after the delivery company defaulted on a 2022 loan of $36.9 million.
Then, in August, Clark’s holding company, FoundersJT, acquired all of Eaze Technologies’ assets for $56 million at auction.
Margaret Jackson can be reached at margaret.jackson@mjbizdaily.com.
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