Stash Ventures, a vertically integrated cannabis company based in Mount Pleasant, Michigan, has announced the acquisition of 11 dispensaries from Cloud Cannabis Co., a rival operator in Troy, Michigan. The deal, which was closed last month, will increase Stash’s retail footprint in the state and allow it to distribute its own cannabis products more widely.
A Strategic Move for Stash Ventures
Stash Ventures, which already operates three Timber Cannabis Co. dispensaries and a cultivation and processing facility in Sturgis, Michigan, said the acquisition was a strategic move to grow its investment in the state and leverage the well-established brand of Cloud Cannabis.
Scott Moorehead, CEO of Stash Ventures, said in a press release that the deal will enable Stash to expand its product lines, such as High Minded Creations, with more of its own retail stores. He also praised Cloud Cannabis for its “high-quality customer service and product selection”.
The financial terms of the deal were not disclosed, but Stash Ventures said it will retain all of the existing employees of Cloud Cannabis and continue to operate the dispensaries under the same name.
Cloud Cannabis Retains Its Cultivation and Processing Operations
Cloud Cannabis, which was founded in 2019, will keep its own cultivation and processing operations under the terms of the deal. The company said it will focus on producing premium cannabis products for the Michigan market and beyond.
Ryan Breen, CEO of Cloud Cannabis, said in a press release that the deal will allow Cloud Cannabis to concentrate on its core competencies and pursue new opportunities in the cannabis industry. He also expressed his confidence in Stash Ventures as a partner and a leader in the Michigan cannabis market.
Cloud Cannabis currently operates dispensaries in Ann Arbor, Cedar Springs, Detroit, Gaylord, Grand Rapids, Kalamazoo, Muskegon, New Baltimore, Traverse City and Utica, according to its website.
Michigan Cannabis Market Continues to Grow
The deal between Stash Ventures and Cloud Cannabis reflects the growing competition and consolidation in the Michigan cannabis market, which is one of the largest and fastest-growing in the country. According to data from the Michigan Cannabis Regulatory Agency, the state’s total cannabis sales reached $3.06 billion in 2023, with $2.18 billion coming from the adult-use market and $880 million from the medical market.
The state also issued 1,281 licenses for adult-use cannabis businesses and 1,030 licenses for medical cannabis businesses as of January 17, 2024. The number of licensed dispensaries in the state was 572 for adult-use and 362 for medical, according to the agency.
With the acquisition of 11 dispensaries from Cloud Cannabis, Stash Ventures will become one of the largest cannabis retailers in the state, with 14 locations across Michigan. The company said it plans to continue to invest in the state and provide customers with the best cannabis products and experiences possible.