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Eaze Pivots to Licensed Cannabis Operator Model and Raises $35 Million – New Cannabis Ventures

February 25, 2020

Eaze Announces $35 Million Investment to Launch Vertical Operations and Increase Cannabis Access for 600,000+ Customers

Reports 71 Percent Annual Increase in Overall Deliveries and 74 Percent Annual Increase in First-Time Deliveries

SAN FRANCISCO, Feb 25, 2020–(BUSINESS WIRE)–Eaze, Californias largest legal cannabis marketplace, announced today it has closed a $20 million investment and secured the ability to raise up to an additional $20 million to complete its Series D funding, inaugurating Eazes verticalization and brand strategy to expand access to safe, legal, and affordable cannabis products.

The $20 million from Series D investors — led by FoundersJT LLC — joins a $15 million bridge round led by Eaze key stakeholders, Rose Capital, DCM, and T.J. Jermoluk.

Verticalization is Eazes second act. Until now, weve invested in proving our market fit, building an enormous and loyal customer base, and becoming Californias biggest marketplace for legal cannabis delivery.

Eaze Chief Executive Officer Ro Choy

Now, were proving we can make this business work in a more sustainable and profitable way, while continuing to grow Eazes existing services.

In January, Eaze acquired DionyMed Brands rights to retail licensee Hometown Heart (HTH) depots in Oakland and San Francisco, and now has oversight of HTHs day-to-day operations. In the coming weeks, Eaze will launch its own line of consumer brands in partnership with local licensees while continuing to support a broad array of independent, world-class California brands and independent licensed retailers across the state.

Despite challenges to Californias legal cannabis industry, the company experienced significant growth in 2019, as reported in the latest Eaze Insights: State of Cannabis Report. Highlights for 2019 include:

  • 97% annual increase in new sign-ups
  • 74% annual increase in first-time deliveries
  • 71% annual increase in overall deliveries
  • 104% annual increase in customers age 50+

Eaze also announced the promotions of Megan Miller to Chief Operating Officer and John Curtis to Chief Financial Officer. Miller, who previously served as Eazes Vice President of Finance and Marketplace, brings a unique combination of deep financial planning skills and comprehensive understanding of Eazes business to her new role. Curtis, who has served as interim CFO since October 2019, has been instrumental in sizing Eazes business and charting the companys path forward to verticalization.

To-date, Eaze has supported over five million legal deliveries, has 600,000 registered customers, and features more than 100 licensed brands through its network of retail partners.

About Eaze

Eaze, Californias largest marketplace for legal cannabis, connects adult consumers with licensed retailers and products. Eaze is on a mission to enhance safe access to legal cannabis, educate people about cannabis as a tool for wellness and drive smart cannabis policies. www.eaze.com.

Original press release