Cannabis drink startup Cann raises $27 million as it expands into Canada – TechCrunch

Startups

Cann, a THC beverage company marketing itself as a fun alternative to alcohol, is making more money as it brings the product to Canada – its first international market expansion.

The startup announced Tuesday that it has raised $27 million in Series A funding from some new and undisclosed institutional investors, former investor Imaginary Ventures and a host of famous influencers, including stars like Nina Dobrev, Adam Devine, Zoey Deutch and Rosario Dawson, among others. The company closed a $5 million seed round in 2020.

Cann’s schtick are low-THC drinks that the consumer can drink a few of without getting too stoned. Their standard offering is an 8 ounce can that contains 2 mg of THC and 4 mg of CBD. For now, Cann may be a bit pricey to compete directly with the full market of beer or spiked seltzer drinkers. A 6-pack of the 8 ounce drinks costs $20 (at least in the California market), but is significantly more expensive with high state taxes on cannabis.

The company has a fairly wide range of product offerings – with varying availability in different markets – including THC-infused syrups that can be mixed with tonics or used as an ingredient in a cannabis cocktail. Somewhat mind-bogglingly, they also sell 12 packs of 8 ounces of Cannabis Free Tonic Water for $25, thought obviously the company is throwing a lot at the wall to see what sticks with their audience.

Cann is, of course, limited by broader cannabis regulations in terms of where markets can go. The startup currently sells products in California, Massachusetts, Rhode Island, Nevada and Illinois. Their expansion into Canada begins with an entry into the Ontario market.

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