Cann, a THC beverage company marketing itself as a fun alternative to alcohol, is bulking up on funding as it brings the product into Canada — its first international market expansion.
The startup announced Tuesday that it has raised $27 million in Series A funding from some new and unnamed institutional investors, past investor Imaginary Ventures and a host of celebrity influencers including stars like Nina Dobrev, Adam Devine, Zoey Deutch and Rosario Dawson, among others. The company closed a $5 million seed round back in 2020.
Cann’s schtick is low-THC drinks that consumers can drink a few of without getting way too stoned. Their standard offering is an 8 ounce can that packs 2mg of THC and 4mg of CBD. For the time being, Cann is perhaps a bit pricey to directly compete with the full market of beer or spiked seltzer drinkers. A 6-pack of the 8 ounce beverages goes for $20 (in the California market at least) but is substantially pricier with steep state Cannabis taxes.
The company has a fairly wide variety of product offerings — with different availability in different markets — including THC-infused syrups which can by mixed with tonic or as an ingredient in a Cannabis cocktails. Somewhat bewilderingly they are also selling 12-packs of 8 ounce Cannabis-free tonic waters for $25, thought it’s clear the company is throwing a lot at the wall to see what sticks with their audience.
Cann is, of course, limited by broader Cannabis regulation in terms of what markets in can move into. The startup currently sells products in California, Massachusetts, Rhode Island, Nevada and Illinois. Their expansion into Canada is starting with an entry into the Ontario market.