Eaze To Announce $35 Million Equity Raise Completion, Launch Of Its Own Brands



In the context of a relatively bearish cannabis market, where capital (or at least easy access to it under favorable conditions) seems to be drying up, and where entrepreneurs are witnessing a pivot in investor interest (from equity structure financings, which was the norm in the industry until last year, toward debt-based financings) cannabis delivery company Eaze, famously backed by Snoop Dogg’s Casa Verde Capital, will distributing more than just weed this week.


According to information procured exclusively, the California-based business will be issuing a full suite of good news on Tuesday.


A Big Raise


Confirming rumors and speculation, the allegedly troubled company will be announcing Tuesday that it has closed a sizable Series D funding round, which includes $20 million in cash and the ability to raise up to another $20 million.


The $20 million Series D round was led by FoundersJT LLC, and comes to supplement a previously-announced $15 million bridge round led by key shareholders, Rose Capital and DCM.


Other notable backers of the company include 500 Startups, Slow Ventures, DCM Ventures, FJ Labs and Great Oaks.


When asked about raising a big equity round, in a context where debt financings are becoming increasingly popular, CEO Ro Choy explains “investors understand that legal cannabis is a long game.


“The market’s challenges won’t disappear overnight, but consumer demand keeps rising and customers want cannabis available at their doorstep, just like any other product. We’re in a very unique position to leverage these trends successfully over time, and that’s why equity is attractive to our investors.


“Given the importance of profitability and increasing cashflow for the business, equity is clearly favorable over debt,” he adds.


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