Michigan Cannabis Startup NOXX Receives $15 Million Investment From Altmore Capital

On the heels of opening its first retail store in August, Michigan-based NOXX says it is positioned for operational growth with the help of a $15 million investment from Altmore Capital.

NOXX will use the financial backing to fund capital expenditures and fuel its plans for acquisitions and expansions.

“NOXX is committed to building one of the most innovative and inclusive companies in cannabis,” NOXX CEO Tommy Nafso said. “Whether people want to transact in person, online or through delivery, NOXX creates a convenient and exceptional shopping experience through unmatched product pricing and selection, hospitality and an industry-leading loyalty program. Together with Altmore Capital, NOXX is poised to become a dominant force in reimagining how consumers shop for cannabis.”

Named for a friendly being from another galaxy, NOXX is a cannabis company on a mission to create a more inclusive world through the power of cannabis. The company and its house of brands provide flower, prerolls, concentrates and other cannabis products at dispensaries across the state.

Room To Grow In Michigan Market?

There is plenty of room for NOXX to grow. Michigan’s legal cannabis market reached nearly $1 billion in sales last year, but about 70% of buyers still purchase weed from the black market, according to a report Anderson Economic Group prepared for the Michigan Cannabis Manufacturers Association.

The report found that about $3.2 billion worth of cannabis was sold in Michigan in 2020. According to the report, about 2 million people used marijuana in 2020 — a 75% increase from 2010.

In August, NOXX announced that it’s partnering with Forty Acres Enterprises to mentor Black cannabis entrepreneurs, open Black-owned cannabis companies and serve as an innovation incubator for Black involvement in cannabis in Grand Rapids and across Michigan. The partnership’s first collaboration is a new cannabis dispensary that opened in Grand Rapids on August 25.

“The cannabis market today is more competitive than ever, and as Altmore continues to evaluate opportunities for investment, we’re focused on finding operators with a growth strategy built around longevity and a proven track record of success in the market,” Altmore Capital Managing Partner Steve Ham said. “NOXX represents all of this, and we’re thrilled to add the company to our portfolio of top-tier cannabis operators.”

Founded in 2018, Tysons, Virginia-based Altmore Capital is a specialty finance firm that invests in the U.S. cannabis industry, primarily through senior secured term loans. The firm has completed more than $300 million in investment to legal cannabis companies operating throughout the U.S. It focuses on companies with more than $20 million in revenue.

For more information about NOXX, click here.

For more information about Altmore Capital, click here.

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Featured photo by Qonkur Media as provided by NOXX