Illinois-based cannabis company The 1937 Group has reached a binding financing agreement with the private investment group SGG Enterprises LLC to secure $17M in new funding.
The state’s first minority-owned vertically-integrated cannabis firm was established to serve as the parent company for multiple Illinois licensed cannabis entities, including a cultivation operation presently under construction, a retail operation, and a cannabis transportation company.
“It is important that we capitalize as the leading social equity entrant in the Illinois regulated cannabis market,” The 1937 Group CEO Ambrose Jackson said. “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 agreement establishes a disbursement schedule of $13 million in equity shares and $4 million as a debt note. The funds will be used for the build-out of current assets, as well as the purchase and build-out of additional Illinois cannabis establishments.
The company’s name is inspired by the Marihuana Act of 1937, which the firm indicated fueled racial discrimination against Mexican-Americans and Blacks, in addition to widespread imprisonment for what is now legal in the majority of the country.