Sweet Flower has closed on a $15 million series A round of financing, led by AFI Capital Partners.
The Los Angeles-based cannabis retailer plans to use the investment to expand its manufacturing and distribution across California, as well as launch a flagship in Culver City, Calif., a production hub in downtown L.A. and roll out an in-house label. Launched in early 2018, the company — which also offers a delivery service — has four locations in L.A. in the areas of Melrose, Studio City, Arts District and Westwood.
“As Sweet Flower continues to build the best-in-class retail and delivery footprint in Southern California, creating the most recognized and respected retail brand in the largest sector of the largest regulated cannabis marketplace in the world, the investment announced today provides the financial backing to rapidly scale our store growth and reach, building significant equity in the Sweet Flower brand,” said Timothy Dodd, Sweet Flower’s cofounder and chief executive officer, in a statement. “Our ability to win new premium licenses and launch new stores while doubling same-store revenues [year-over-year] speaks to the strength, bench depth and focus of our management team.”
Sweet Flower’s presence and partnerships have been rooted in L.A. County, establishing collaborations with fashion label Free & Easy and teaming with the likes of entertainer Chelsea Handler, Beverly Hills beauty salon Striiike, Lionsgate’s comedy “Barb and Star Go to Vista Del Mar” and Culver City-based Beats by Dre. But the news coming out of New York this week, with lawmakers finalizing a deal to legalize recreational marijuana in the state — though it has yet to be approved — creates unprecedented opportunity for the cannabis market on the East Coast. (In California, it was in 2016 that recreational use of marijuana was legalized for adults age 21 years and older through Proposition 64, following Washington and Colorado, which legalized its use in 2012.)
“Sweet Flower is the future state of retail cannabis, and we are ideally positioned for the New York market,” said Dodd. “I lived and worked in New York City for many years prior to founding Sweet Flower and have deep business and creative roots in the city. Sweet Flower would be a great brand fit for this vibrant new market.”