MARCH 25, 2021
SACRAMENTO, Calif. — Local cannabis dispensary chain Perfect Union is poised for growth this year, as its CEO plans to double its total number of dispensaries to 16.
The company recently completed a $10.8 million equity offering through its holding company, MWG Holdings Group Inc. Those dollars are likely to pay for several acquisitions of storefront dispensaries across the state, said CEO David Spradlin.
“We hope to be the lead retailer in California,” Spradlin said.
Sacramento-based Perfect Union previously raised $8.8 million in 2019. In the future, the company could launch a Series C fundraising round in the range of $30 million to $50 million, Spradlin said.
Spradlin has been working in the cannabis retail industry since 2009. He first operated three Sacramento locations — then known as River City Phoenix, Hugs Alternative Care and Metro — and brought them under the Perfect Union brand. The three dispensaries date back to when only medical cannabis was legal in California.
The separately owned Metro dispensary has since left the Perfect Union chain, and the two companies are currently in a legal dispute over Metro’s departure. Spradlin declined to comment on the case while litigation is ongoing.
Over the last two years, Perfect Union has added another six dispensaries, bringing the total number of storefronts it owns and operates to eight. The company currently has dispensaries in Sacramento, Marysville, Riverbank, Turlock, Seaside, Morro Bay and Weed.
Spradlin anticipates that most of the recent $10.8 million funding will be used to add more dispensaries across the state. Currently the company has new locations in the works in Shasta, Marina Del Rey, Ukiah, San Francisco, Napa and Stockton, he said.
Spradlin said that many of Perfect Union’s acquisitions have included smaller operators that were struggling to turn a profit.
“As operators in California for the last 12 years, we know how to make these places click,” Spradlin said.
He added that the company also has strength in its scale, its knowledge of California’s regulatory framework and its ability to have a “good team of locals” on the ground.
Source: SACRAMENTO BUSINESS JOURNAL | Author: Felicia Alvarez