Tokyo Smoke, a Toronto-based cannabis lifestyle and retail brand, has raised $4 million in the first close of its Series B financing. The round, which is expected to this month exceed $5 million, was led by Aphria Inc, a Canadian medical cannabis producer, and Green Acre Capital, a Canadian cannabis-focused private investment firm, and joined by new and existing investors. Tokyo Smoke earlier this year said it was partnering with Aphria to release several branded cannabis strains. The announcement was made at the time of its $3 million Series A round. Tokyo Smoke was founded in 2015 by CEO Alan Gertner and Chairman Lorne Gertner.
Tokyo Smoke closes on $4 million of Series B funding
Cannabis lifestyle and retail brand’s latest funding to be upsized with lead investment from Aphria and Green Acre Capital
TORONTO, ON–(Marketwired – August 03, 2017) –
Tokyo Smoke, an award-winning lifestyle brand aiming to bring sophistication and design to the cannabis space, is excited to confirm the first closing of its Series B funding at approximately $4 million CAD. The company is pleased that its current funding round is oversubscribed, and is expected to exceed the initial target of $5 million CAD. Final close of its Series B is expected by the end of August 2017. The funds will help accelerate Tokyo Smoke’s vision to be Canada’s leading cannabis brand.
Tokyo Smoke’s Series B funding has been led by Aphria Inc., one of Canada’s largest medical cannabis producers, and Green Acre Capital Fund I LP, a fund dedicated to strategic investments in cannabis properties. Says Aphria CEO Vic Neufeld, “We believe Tokyo Smoke is at the forefront of modern cannabis retail and branding. Aphria is excited to be a part of its future as it redefines the retail cannabis experience.”
Encouraged by demand from new and existing investors, including W. Brett Wilson (iBanker, CBC Dragon Emeritus) and Charles Broderick (one of the largest early investors in Canada’s medical cannabis market, founder of Uji Capital LLC), funding from North American and International investors will be allocated to continued retail expansion across North America, marketing and strategic acquisitions.
“Almost one year ago, we partnered with Aphria on a first-of-its kind cannabis deal in Canada. Today, we are incredibly grateful to welcome Aphria to Tokyo Smoke as shareholders, as we continue to build the largest cannabis related retail infrastructure in Canada. The outsized investor demand suggests that leaders in the cannabis industry like Green Acre Capital agree Tokyo Smoke is positioned to become a category defining brand in cannabis,” says Alan Gertner, co-founder and CEO of Tokyo Smoke. “As Canada moves towards legalization, we believe this country will model modern cannabis experiences and Tokyo Smoke will remain at the forefront of that experience.”
About Tokyo Smoke:
Tokyo Smoke is an award-winning lifestyle brand that aims to bring sophistication and design to the cannabis space. With immersive experiences and designer retail spaces selling coffee, clothing and designer products, Tokyo Smoke is developing an international reputation as the go-to destination for luxurious, creative offerings within the industry. Tokyo Smoke continues to be the leading Canadian brand in the cannabis space, having recently completed its Series A fundraise, closed on the acquisition of fellow designer cannabis brand Van der Pop, partnered with Aphria Inc. (TSX: APH) or (OTCQB: APHQF) and WeedMD (TSX VENTURE: WMD), as well as developed Nesta Brand Co (a brand expansion company bringing the best cannabis products to the Canadian market).
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Abigail Van Den Broek
Photo courtesy of Tokyo Smoke