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Case Studies

Cannabis Manufacturer and Craft Beer & Spirit Company

Consumer Packaged Goods

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SOLU­TION

  • Found­ed in 2019, BC Infin­i­ty, Inc. (the Com­pa­ny”) is the only ver­ti­cal­ly inte­grat­ed cannabis man­u­fac­tur­er in Texas, ded­i­cat­ed to bring­ing cannabis main­stream, both through hemp-derived cannabi­noids and through the Texas Com­pas­sion­ate Use Program
  • In August 2021, the Com­pa­ny start­ed col­lab­o­rat­ing with Houston’s favorite craft beer and spir­its mak­er (8th Won­der), which has been oper­at­ing for over a decade as a brew­ery, tap­room, dis­tillery and tast­ing room, and acquired them in May 2023
  • The Com­pa­ny has a wide­ly rec­og­nized port­fo­lio of cannabis lifestyle brands, man­u­fac­tur­ing low dose hemp-derived THC seltzers, non-alco­holic spir­its, and gummies
  • Their estab­lished and rapid­ly grow­ing inter­con­nect­ed net­work of dis­trib­u­tors (region­al­ly and nation­al­ly) has brought the Company’s prod­ucts on shelf in tra­di­tion­al retail sales chan­nels includ­ing Specs, Total Wine, and ABC liquor stores. The Com­pa­ny also brews 5 core year-round beer offer­ings plus sea­son­al vari­etals found across 1,000 retail loca­tions in the US. The prod­ucts are also avail­able in on-premise accounts and can be found in promi­nent bars, restau­rants, movie the­aters and oth­er enter­tain­ment venues
  • Chi­ron was engaged in Octo­ber 2023 as the exclu­sive invest­ment banker to raise $10.0MM in equi­ty cap­i­tal to com­plete the inte­gra­tion of 8th Won­der, expand facil­i­ties and grow cur­rent oper­a­tions, accel­er­ate growth of the THC-bev­er­age prod­ucts, launch med­i­c­i­nal mar­i­jua­na oper­a­tions (exclud­ing plant growth), and fund gen­er­al work­ing cap­i­tal needs

OUT­COME

  • Chi­ron pre­pared the finan­cial mod­el, investor list, invest­ment teas­er, con­fi­den­tial infor­ma­tion mem­o­ran­dum (CIM) and VDR
  • Chi­ron mar­ket­ed the deal to 1500+ ven­ture cap­i­tal funds, pri­vate equi­ty funds, and fam­i­ly offices span­ning a vari­ety of indus­tries (cannabis, con­sumer pack­aged goods, food and bev­er­age, man­u­fac­tur­ing, etc.) while also exer­cis­ing their net­work of ultra-high net worth and high net worth individuals
  • Chi­ron pub­lished an infor­ma­tion­al white paper on the indus­try in efforts to attract addi­tion­al mar­ket attention
  • Chi­ron part­nered with the Com­pa­ny to orga­nize an event for poten­tial investors and con­nec­tors to inter­act with the brand
  • Chi­ron launched a par­al­lel cap­i­tal raise at the sub­sidiary (BTB Brands) vs. the hold co. lev­el in attempts to gar­ner addi­tion­al interest
  • Chi­ron helped the Com­pa­ny struc­ture a retail agree­ment with a strate­gic part­ner (Specs)
  • Ulti­mate­ly, Chi­ron and the Com­pa­ny closed the round over­sub­scribed (~$12.3MM raised vs. $10.0MM tar­get) after receiv­ing invest­ments from new and exist­ing investors along with a pub­licly trad­ed strate­gic entity

The Situation

In August 2021, the Company started collaborating with Houston’s favorite craft beer and spirits maker (8th Wonder), which has been operating for over a decade as a brewery, taproom, distillery and tasting room, and acquired them in May 2023. Their established and rapidly growing interconnected network of distributors (regionally and nationally) has brought the Company’s products on shelf in traditional retail sales channels including Specs, Total Wine, and ABC liquor stores.

The Chiron Solution

Chiron was engaged in October 2023 as the exclusive investment banker to raise $10.0MM in equity capital to complete the integration of 8th Wonder, expand facilities and grow current operations, accelerate growth of the THC-beverage products, launch medicinal marijuana operations (excluding plant growth), and fund general working capital needs

The Result

Chiron and the Company closed the round oversubscribed (~$12.3MM raised vs. $10.0MM target) after receiving investments from new and existing investors along with a publicly traded strategic entity

Is your com­pa­ny per­form­ing like it should?

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