California Cannabis Brand Claybourne Industries Raises $17.5M

California cannabis brand Claybourne Industries Inc. announced Friday the closing of $17.5 million in new funding.

The Riverside-based company said that the Series A equity financing of $10 million was led by Green Acre Capital, with the participation of groups of high-net-worth individuals, most with cannabis industry experience.

The debt financing was comprised of a $5 million working capital line of credit from Bespoke Financial and $2.5 million in equipment financing.

Tyler Stuart, co-founder and managing partner of GAC, said he was thrilled to team up with Claybourne’s entrepreneurial and professional management team.

“The market share they have captured in a short period of time in the highly competitive California market has been very impressive,” Stuart added.

“With our strengthened capital base, we look forward to expanding into other states with a focus on open markets, no license caps, no residency requirements, and the potential for sustained growth,” Nick Ortega, CEO and co-founder of Claybourne said.

Ortega explained further that Claybourne, which is owned by friends and family, has been self-funded with only $3 million in capital prior to this.

“This bootstrap philosophy since inception in Q4 of 2018 has allowed us to achieve rapid revenue and profit growth, all in the California market,” Ortega added. 

Photo: Courtesy of Michael Longmire on Unsplash