Missouri-Based Operator Secures $22M For Minnesota Cannabis Project

In light of the recent legalization of adult-use cannabis in Minnesota, Hwy35, a Missouri-based cannabis operator, recently obtained a significant $22 million in funding from two Minnesota state agencies.

The funding aims to facilitate the establishment of a state-of-the-art cannabis cultivation and manufacturing facility, as outlined in documents released by the Iron Range Resources & Rehabilitation Board (IRRRB), one of the primary funding entities.

See Also: Gov. Tim Walz To Sign Recreational Cannabis Bill Into Law On Tuesday, Minnesota Becomes 23rd Legal State

A Project to Boost Jobs & Tax Revenues

As reported by MJBizDaily, the project's objective is to tap into the burgeoning market by acquiring the necessary equipment and infrastructure to cultivate high-quality cannabis, extract oils and manufacture a diverse range of premium cannabis products. The facility is set to cover 60,000 square feet over two construction phases with an estimated cost of $67.8 million.

Hwy35 is poised to receive financial support through loans from various sources:

• $10 million from the Iron Range Resources & Rehabilitation Board.
• Another $10 million from the Minnesota Department of Employment & Economic Development.
• An additional $2 million in tax-increment financing from the city of Grand Rapids, MN.

See Also: The Rise Of The Northeastern Cannabis Market, Profitability And Inclusion At Benzinga Cannabis Capital Conference

Ida Rukavina, the commissioner of the Iron Range Resources & Rehabilitation, underscores the project's unique fusion of manufacturing and agriculture, emphasizing its potential to significantly diversify the local economy.

"Because the project is based in both manufacturing and agriculture, it has the potential to significantly diversify the local economy, which is one of our agency’s primary goals," said Rukavina.

Jack Mitchell, a principal at Hwy35 who holds key roles at Besa Group and Mitchell Hospitality in Kansas City, Missouri, envisions Hwy35 as a pioneering cannabis cultivation operation in Minnesota. He strategically positions the venture in anticipation of the launch of adult-use cannabis sales in 2025.

"We could get up and operating before 90% of the market," he said.

Read Next: Cannabis Sales Launch On Tribal Land In Minnesota As Rest Of State Works Out Red Tape For Legal Program

Image by El Planteo