Business

Chicago Atlantic Fuels Nova Farms Expansion with $20 Million Investment

CHICAGO, April 8, 2024 /PRNewswire/ -- In a significant move that highlights the growing acceptance and profitability of the cannabis industry, Chicago Atlantic has injected a substantial $20 million in senior secured financing into Nova Farms. This fully integrated cannabis operator boasts a comprehensive network of a cultivation farm in Massachusetts, seven unique retail brands, and five full-service dispensaries spread across Massachusetts, Maine, and New Jersey.

The financial backing from Chicago Atlantic is geared towards bolstering Nova Farms' initiatives to enlarge its spectrum of dispensaries within critical states. Notably, New Jersey, a rapidly growing market, has accumulated over $1.3 billion since it commenced adult-use cannabis sales in April 2022, and Connecticut, which green-lighted adult-use cannabis in January 2023, has already reported $274 million in revenue in its inaugural year.

Nova Farms, distinguished as one of the pioneering licensees in Massachusetts post the 2016 statewide legalization of adult-use cannabis, has demonstrated a steadfast pattern of growth and profitability since its inception. The company's ascent in the cannabis market is a testament to its robust business model and strategic market positioning, setting the stage for an unmatched expansion in this rapidly developing industry.

Peter Sack, Partner at Chicago Atlantic, remarked on the notable business acumen and successful operational track record of Nova Farms, expressing utmost confidence in the company's vision to amplify their presence in the Northeast. He emphasized the importance of enhancing safe and positive access to cannabis products in supporting their overarching mission.

With the legal U.S. cannabis market poised to approach a staggering valuation of nearly $40 billion by the year 2024, Nova Farms and similar multi-state operators are witnessing an upsurge in consumer demand for premium retail products and accessible purchasing points. In light of this thriving demand, Nova Farms is extending an invitation to equity investors to partake in their ambitious journey of growth and innovation.

Derek Ross, the CEO at Nova Farms, heralded the new partnership with Chicago Atlantic as a groundbreaking chapter in the company's long-standing legacy within the cannabis sector. Ross expressed immense pride in Nova Farms' comprehensive control over the quality and efficiency at every stage of their supply chain. This partnership is not just a financial boost but also a strategic collaboration aimed at accelerating Nova Farms' expansion plans and fortifying its competitive stance as an industry frontrunner.

Nova Farms is projecting to inaugurate its next retail outlet towards the end of 2024, a move reflecting the firm's commitment to ameliorating accessibility to top-quality cannabis products. This expansion is a reflection of Nova Farms' aspiration to be at the vanguard of excellence within the cannabis sector. Blair Fish, the COO of Nova Farms, is available to provide further insights to those interested in contributing to Nova's growth narrative.

Detailed references to the revenue accumulated by New Jersey and Connecticut post the legalization of cannabis can be found on the official NJ government website and reports from NBC Connecticut, respectively. Furthermore, projections of the legal cannabis industry's worth are supported by data from Statista Market Insights as of April 2024.

About Chicago Atlantic

Chicago Atlantic is a trailblazer in the private market investment domain, specializing in industries and companies that have a substantial capital demand which traditional funding streams do not satisfy. Founded by the insightful trio—John Mazarakis, Tony Cappell, and Andreas Bodmeier—in 2019, Chicago Atlantic has been furnishing capital solutions to state-licensed cannabis operators. Over $2 billion in credit and equity investments counting represents the firm's stature in the investment landscape. The firm's diverse financial strategies span opportunistic credit, private equity, and impact investing, encompassing an array of services from loans targeted at esoteric industries to growth and technology finance. The firm's group of over 75 diligent professionals operates out of their offices located in Miami, Florida, and Chicago, Illinois. To discover more about Chicago Atlantic's financial services, visitors can explore its offerings on chicagoatlantic.com.

About Nova Farms

Established by a collective of enterprising individuals passionate about cannabis, Nova Farms has blossomed into a vanguard of the industry led by experienced pioneers. Initially starting with several licenses and a farm in Massachusetts, the business has evolved to include adult-use cannabis retail brands and full-service dispensaries strategically located in Attleboro, Dracut, and Framingham in Massachusetts; Greenville, Maine; and Woodbury, New Jersey. For a deeper understanding of Nova Farms and its operations, interested parties can visit NovaFarms.com.

Press Contact Information

For media inquiries and further press-related information, reach out to Alise M. Edgcomb, Managing Director of Public Relations, at (419) 202 – 3988 or email [email protected]

Members of the business community and potential investors can also get in touch directly with Derek Ross, CEO of Nova Farms, for additional details about the company’s vision and investment opportunities at (508) 212 – 4490 or communicate via email at [email protected]

SOURCE: Nova Farms

Nova Farms' commitment to providing high-quality cannabis products and its strategic partnership with Chicago Atlantic signal an exciting phase of growth and prominence within the cannabis industry. As the market continues to evolve, Nova Farms is poised to lead, innovate and redefine accessibility and industry standards in cannabis.