Integrated CBD, producer of organic hemp-derived CBD, has closed $50 million in senior secured debt and a Series A equity round in a combination of debt and equity financing. The senior debt is led by an undisclosed New York based hedge fund managing approximately $7.4 billion in assets.
As one of the largest U.S. organic hemp operators with approximately 10,000 acres of certified organic land, Integrated CBD seeks to set the highest standards and practices for sustainable farming at scale in the fast-growing CBD marketplace.
The new funds will be used to build out operations, including completing construction of both a 154,000-sq.-ft. extraction facility and large-scale hemp drying facility; and to expand into the second planting of this year's hemp crop (Arizona can produce three crops per year). Expanding the sales and marketing effort through new hires in product development and sales will also be key areas of growth.
Integrated CBD has gained significant momentum this year alone. In January the company raised $3.3 million in a pre-seed round, followed in March by a $10 million seed funding round. The company secured advisory board members in Jason H. Karp, former CEO and founder of Tourbillon Capital Partners and Nat Turner, CEO and co-founder of Flatiron Health.
Based in Scottsdale, Integrated CBD is the largest hemp operation in the state of Arizona. It made history this summer for planting the state's first hemp seeds since prohibition. Most recently, the company was one of the first CBD supply chain leaders to provide seed-to-shelf production traceability using Verified Organic blockchain technology. Integrated CBD's extraction plant will be commissioned in early Q1 and the dryer facility will be completed by the end of this month. Three thousand acres of hemp are being grown this year across two plantings and will be harvested by the end of this year.
"CBD could potentially be one of the most frequently used wellness products this year,” said Patrick Horsman, president and CEO of Integrated CBD. “Our mission is to be the trusted supplier of organically grown and sustainably sourced phytocannabinoids for the global market as more consumers incorporate wellness in their daily lives. Integrated CBD is helping to shape the future of wellness by driving verifiable and transparent industry standards for safety and sustainability. This funding will help us to rapidly build and complete operations and infrastructure to deliver on our mission."
Since January, Integrated CBD has raised a total of $78 million in debt and equity. Integrated CBD's farmland and hemp crop have been certified as USDA organic by the California Certified Organic Farmers Foundation (CCOF).
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