Tokyo Smoke is claiming to be the first Canadian cannabis consumer brand to raise capital and that it oversubscribed on its first round of fundraising. Interest in the Toronto-based start-up, which also specializes in coffee and clothing as well as cannabis products, reportedly raised a total of $3 million ($2.25 million USD), 50% more than its initial target, from wealthy investors that include Canopy Growth co-founder Chuck Rifici and former Dragon’s Den reality TV star W. Brett Wilson.
“I greatly respect Tokyo Smoke as a reputable brand focused on a legal and responsible approach to bringing clarity, safety, education and product excellence to the cannabis industry,” said Wilson in a press release announcing the deal. “My strategic investment in Tokyo Smoke is in response to inevitable changes in the business environment for medical and recreational marijuana, and my desire to see the industry accelerate research initiatives around the various available products and promote responsible usage, especially in our younger consumers.”
In the first quarter of this year, Tokyo Smoke is partnering with Aphria Inc., one of Canada’s largest LPs, to sell four branded cannabis strains. No details about the strains or where they would be sold were given in the release.
The money is expected to enable the company to expand into the United States in 2017.