Cannect Wellness raises $7M, plans expansion in Illinois

Cannect Wellness has secured $7 million in new funding, the company said on Tuesday.

The Chicago-based craft cannabis producer plans to use the capital infusion to beef its production capacity, expand its product portfolio and double its workforce.

This latest capital infusion brings the firm’s total equity financing to $14.5 million since launching last year. It comes as capital raises in the cannabis industry have been on the downslide since the glory days.

“We are thrilled to have the support of our investors as we continue to grow and push the boundaries of what a craft cannabis company can achieve,” CEO Gabe Singal said in a statement.

He added, “This round of funding will allow us to reach more customers, improve our processes, and maintain our focus on high standards of quality and sustainability.”

The $7 million “comes from a diverse group of investors, including both new and existing backers,” the company said in a news release. However, Singal told MJBizDaily that one limited-liability company “with about a dozen members” put down the entire $7 million.

Cannect Wellness has gained traction in the competitive state market by focusing on small-batch, high-quality products. The company describes its approach as “quality over quantity.”

According to state data, Illinois cannabis sales surpassed $1 billion halfway through 2024, with adult-use sales accounting for more than $850 million of that. The state’s legal cannabis market tallied more than $2 billion in sales for the 2024 fiscal year, which ended in July, up from $1.9 billion in the previous fiscal year.

The company’s craft focus positions it to capitalize on consumer preferences in a maturing market that saw flower account for 49% of purchases in recent Illinois data. The privately held company does not disclose specific revenue figures.