CHICAGO, Aug. 30, 2022 The 1937 Group, Ltd. announced it recently secured $17M in new funding. The company closed a binding financing agreement with the private investment group, SGG Enterprises LLC.
The funds will be used for the build-out of current assets, and for the purchase and build-out of additional Illinois cannabis establishments.
The 1937 Group was established to be the parent company for multiple Illinois licensed cannabis companies, including a 52,000 sq ft cultivation operation currently under construction (Helios Labs), a retail operation (Parkway Dispensary), and a cannabis transportation company (Highwaymen Security).
The company is also in the process of securing an additional Craft Grow license and four (4) additional Illinois retail dispensary licenses.
“It is important that we capitalize as the leading social equity entrant in the Illinois regulated cannabis market,” said Ambrose Jackson, CEO of The 1937 Group. “During these times, when venture markets have seemingly dried up, our ability to secure capital and consummate this deal is a great indicator that we have the right team and the right strategy in place; and that we can execute on our vision of becoming not only one of the first new operators to the market, but also one of the most impactful.”
The terms of the agreement establish a disbursement schedule of $13M in equity shares and $4M as a debt note.
The name “The 1937 Group” is inspired by the Marihuana Act of 1937, which fueled pervasive racial discrimination against Mexican-Americans and Blacks, and widespread imprisonment for what is now a legal activity in the majority of the United States.
(This information is primarily sourced from The1931Group . Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).