Wynchwood Asset Management, the investment company of Wrigley gum scion, William “Beau” Wrigley Jr., has led a $65 million Series C for medical cannabis company Surterra Wellness. Under the terms of the investment, Wrigley Jr. will also join Surterra’s Board of Directors in the role of Chairman.
Founded in 2014, and holding one of 14 vertically integrated medical marijuana licenses in Florida, and one of the three in Texas, Surterra is one of the leading medical marijuana companies in the U.S.
In the state of Florida, the company has more than 300,000 square feet of cultivation space; operates 10 Wellness Centers in Pensacola, Tallahassee, Tampa, North Port, Largo, Deltona, Jacksonville, Orlando, Port Orange, and notably: the first and only Wellness Center in Miami Beach; and three distribution centers that provide next-day delivery statewide.
Using natural growing practices and innovative extraction methods, Surterra utilizes best practices of agriculture, science, and medicine to develop uniquely formulated products including tinctures, oral sprays, topical creams, time released transdermal patches, and soon-to-be launched soft gels.
“I am thrilled to join the Surterra team and help drive their mission to build a best-in-class cannabis healthcare business,” said Wrigley. “After extensive diligence, we determined that Surterra has the highest quality standards, best products, and most professional management team in the industry. We believe in the ability of cannabis to improve quality of life for patients across the country, and we are excited to build a global industry leader for the long term.”
On Board
Beau led the Wm Wrigley Jr. Company – a confection giant founded in 1891 by his great-grandfather, as Chairman, President, and CEO at various points in his career. During his tenure, the Wrigley Company saw several successful acquisitions including those of LifeSavers and Altoids. The company also saw continued organic growth, selling to customers in 180 countries before Beau helped orchestrate the company’s sale in 2008 to Mars Incorporated.
After such a storied career, billionaire Wm. “Beau” Wrigley Jr. is yet another mainstream iconic name to become a backer of a medical marijuana venture.
In June 2016 Microsoft announced it had entered into a partnership with cannabis industry-focused company KIND Financial – a provider of “seed to sale” software services for the legal cannabis production industry. One month later, Jim Hagedorn, CEO of Scotts Miracle-Gro, announced his company’s plans to invest $500 million in the legal marijuana space.
In October of last year alcohol giant Constellation Brands – the $42 billion name behind such consumer favorites as Corona and Modelo beers and Svedka vodka – agreed to acquire a 10 percent stake in Canada’s Canopy Growth Corporation, a leading provider of medical marijuana, for $191 million.
In April of this year, former House speaker John Boehner, who railed in Washington for years against legalizing marijuana, joined the Board of Acreage Holdings, tweeting at the time, “My thinking on cannabis has evolved…so we can do research, help our veterans, and reverse the opioid epidemic ravaging our communities.”
And more recently, in July of this year, a subsidiary of UK-based big tobacco company Imperial Brands joined with Snoop Dogg’s investment fund Casa Verde to invest $10 million in medical marijuana research company, Oxford Cannabinoid Technologies.
Plans
Surterra plans to use these Series C funds for various strategic initiatives across Florida and Texas including the construction of additional cultivation space in Florida; forging partnerships with high-profile consumer brands to accelerate its product development; and conduct clinical trials examining the treatment of anxiety, pain, PTSD, and other serious health issues with cannabinoids. The company also plans to expand geographically into new U.S. state markets.
“Surterra is proud to welcome Beau, a business leader who brings decades of world class experience and expertise in brand building, to Surterra Wellness,” said Surterra CEO Jake Bergmann. “Having a seasoned industry veteran like Beau intimately involved in building Surterra’s business is exciting for the future of Surterra, our patients and the entire medical cannabis industry.”
-Lynda Kiernan