How Cannabis Co. Fernway Raised $6M In A Tough Market, Driving 135% YoY Revenue Growth

Fernway, a leading cannabis brand in the Northeastern U.S., has announced strong financial results for Q2 2024 and significant strategic transactions that highlight its rapid growth and market expansion.

For the quarter ending June 30, 2024, Fernway reported $10.2 million in wholesale revenue, alongside an estimated annualized retail gross merchandise value (GMV) exceeding $85 million. This marks a notable 135% year-over-year growth, showcasing an accelerated performance compared to Q1 2024. In the previous quarter ending March 31, 2024, the company recorded $7.5 million in wholesale revenue and an annualized retail GMV of $60 million, reflecting a 63% year-over-year increase from Q1 2023.

Strategic Transactions Fuel Growth

Fernway's growth trajectory has been supported by strategic financial transactions. In April 2024, Delta Emerald Ventures led a $6 million convertible note equity financing for Fernway, with participation from Lago Innovation and several existing seed investors.

Delta Emerald Ventures, known for its cutting-edge data platform, which aggregates cannabis data to extract valuable insights, first connected with Fernway at the 2022 Benzinga Capital Conference in Miami.

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In June 2024, Fernway secured a guidance line with a New England-based bank, which will provide debt financing at the Federal Home Loan Bank of Boston rate plus 6%, translating to a 10.5% annualized rate. This strategic move is expected to further bolster Fernway's financial stability and support its expansion initiatives.

Market Expansion And Future Plans

Fernway entered the New York adult-use cannabis market in February 2024, marking a significant step in its expansion strategy. The company continues to evaluate additional nationwide opportunities, aiming to bring its high-quality cannabis products to a broader audience.

Fernway's commitment to innovation and customer satisfaction remains at the core of its operations. Since its founding in 2018, the company has focused on creating a brand that resonates with consumers seeking premium cannabis experiences. Fernway's name, inspired by the German word "fernweh" (the longing for faraway places), encapsulates its philosophy of enhancing life's adventures with cannabis.

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Cover image made with AI