OAKLAND (May 8, 2019) — PRESS RELEASE — NUG, a diversified cannabis company in California, has announced it has closed a $15 million Series A funding round led by an international group of investment executives. NUG will use the capital to elevate its role as a dominant brand, and expand its three key pillars of manufacturing, distribution and branding—which includes its new retail venture.
“NUG has rapidly expanded since it was founded in 2014, exceeding all expectations including production and revenue,” said Bryant Tong, chairman of the NUG Board of Directors. “The company has impressively navigated the complex and evolving adult-use market catapulting from a startup to a thriving enterprise. With a standout team and unique operation capabilities to control the entire brand experience, this capital investment will enable NUG to continue to excel on all fronts, from cultivation and production to wholesale and retail.”
NUG’s Series A equity offering was originally issued to raise $10 million, but ultimately it was oversubscribed and the company raised an additional $5 million, underscoring investors’ confidence in NUG’s mastery of the seed to sale market and enormous growth potential.
“This latest capital infusion represents an ongoing phase of aggressive growth for NUG and is indicative of an auspicious future, validating our team’s relentless ambition and commitment to developing top notch products, innovative services and technology,” said Dr. John Oram, CEO and founder of NUG. “We’re looking forward to continuing our mission of normalizing the cannabis experience for consumers and bringing this industry into the mainstream.”
NUG operates one of the largest manufacturing processing centers in California and its products are represented in more than 80 percent of the state’s dispensaries. The award-winning edible and smokable items, developed at the company’s world-class Oakland facilities through trailblazing R&D, extraction, distillation and post-processing laboratories, bring in revenues in excess of $35 million annually.
The funding announcement comes on the heels of the company’s marked success in 2018, a year that surpassed revenue projections, and heightened momentum in 2019. NUG continued to broaden and diversify its portfolio with new product rollouts and the opening of its state-of-the-art flagship retail store in Sacramento, Calif., the first of five NUG stores planned for 2019. The opening represented a major milestone as NUG became the first brand to oversee their products every step of the way, from the cultivation and extraction to the in-store experience and customer relations.