DENVER – Rx Green Technologies, a provider of cannabis cultivation inputs and services, has announced an initial closing of $9.75 million of growth equity financing, its first institutional capital raise. The funding, led by Intrinsic Capital Partners, with significant participation from existing investors, is part of a larger growth financing of up to $11.5 million, which will be used to invest in new manufacturing locations, manufacturing automation technology, new research and development capabilities and increased customer support. The funding also positions RXGT to capitalize on an active pipeline of acquisition targets with complimentary products and competencies.
“We are excited to have the resources to better serve our clients with more locations, upgraded technology, new products and more services,” said Wes Matelich, CEO of RXGT. “And we’re thrilled to partner with Intrinsic, which has deep industry reach, a strong stable of operating partners and tremendous experience in scaling life science and technology businesses,” added Matelich.
“At Intrinsic, we’ve spent years studying this industry, have long been interested in the agriculture technology and services sector, and believe Wes and his team have built the industry’s leading platform,” said Intrinsic partner, Cornelius Merlini. “Because of its customer-centric direct-to-cultivator relationship model, we believe RXGT is best positioned to support cultivators with the products and services needed to meet growing consumer demand and an increasing emphasis on quality control, compliance and user safety.”
Based in Colorado and led by experienced agricultural scientists, RXGT’s research and development team has built sophisticated product development infrastructure focused on formulating cannabis-specific products that are rigorously tested and scientifically backed. All RXGT products are tested by independent labs with strict quality control measures in place to ensure product safety and, ultimately, help cultivators optimize yield and produce better and safer cannabis products.
“RXGT’s commitment to excellence and safety aligns well with our objective at Intrinsic to partner with exceptional management teams that share our vision of building products, services and technologies that help ensure supply chain compliance, product integrity, consumer safety and industry fairness,” added Merlini.
(This information is primarily sourced from Intrinsic Capital Partners. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).