MainStem, Inc. Continues Expansion in the Ancillary Cannabis Supply Industry and Prepares for Merida-Led Series C Round in Q4
Sep. 12, 2018
SEATTLE--(BUSINESS WIRE)--Sep 12, 2018--MainStem, Inc., a privately funded e-commerce marketplace of ancillary products in the regulated cannabis industry, continues its expansion with revenue increases of approximately 30% Quarter over Quarter in 2018. MainStem also saw over 500% Quarter over Quarter growth in affiliate revenue, and now serves customers across 13 states and Puerto Rico. The company, part of the Merida Capital Partners portfolio of companies, has been growing exponentially over a relatively short period since launching its MainStem Marketplace in late 2017. The MainStem Marketplace, serving cultivators, processors, and dispensary/retailers, features one of the most extensive catalogs of ancillary products in the industry with hundreds of brands and over 10,000 products.
Mitchell Baruchowitz, Managing Partner of Merida Capital Partners, commented, “The efficiency MainStem brings to the fulfillment of ancillary products is evident in its adoption numbers and revenue growth. The Company has executed well in developing the type of integrated electronic solution for procurement of ancillary supplies that the rapidly professionalizing industry needs. Merida is excited by MainStem’s current success, and we plan on adding to our initial capital investment in leading their Series C round.”
“MainStem continues to see an acceleration in our revenue as a result of the growing awareness of our Marketplace and how it solves supply purchasing within the Cannabis Industry,” said Alen Nguyen, MainStem’s Chairman and CEO. “We are also proud of our ability to maintain a healthy balance sheet with no debt heading into our Series C Fundraising Round in Q4 2018.” Nguyen, an MBA who has a background in strategic business development in the aerospace industry, has led MainStem since its inception and overseen integration with large service providers in the industry, and leading product vendors like KushCo Holdings, another Merida portfolio company.
“MainStem has played an important role in simplifying the supply chain for countless cannabis businesses, which allows operators to focus on growth and moving the industry forward. They’ve also done an incredible job of raising capital to accelerate their growth, including their recent deal with one of our key investors, Merida Capital Partners. I’m excited to continue our partnership with Alen and his team, combining our wide array of products with MainStem’s innovative sales platform and excellent customer service,” said Nick Kovacevich, CEO of KushCo Holdings, Inc., formerly Kush Bottles, Inc. (OTCQB: KSHB).
Nguyen will be appearing on an investment panel at the Cannabis World Congress and Business Exposition (CWCB) in Los Angeles on September 26-29, discussing the investment environment for private companies in the cannabis industry. He will be joined on the panel with other thought leaders on the subject, including Kovacevich from KushCo Holdings, Inc. You can also speak with Nguyen at the CWCB Expo in Boston on October 17-20.
For more information, please visit https://gomainstem.com/.
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Linden Mundekis, 206-492-7173
Craig McCallum, CFO, 206-503-2263
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SOURCE: MainStem, Inc.
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PUB: 09/12/2018 05:00 AM/DISC: 09/12/2018 05:00 AM