As the legalization of cannabis looms in Canada, many companies will look to make a mark in the industry and enter with a splash.
Braingrid is one of those budding startups, and they have announced a $2.5 million raise to better help them enter and corner the market of cannabis sensor platforms.
The new funding comes via a private placement financing round that saw 6.5 million shares of Braingrid sold for $0.40 per unit. The investor group includes a number of different VC funds according to Braingrid, but only Quinsam Capital Corporation was named. Quinsam is a merchant bank that focuses on cannabis-related investments.
Braingrid will use the proceeds from the investment for general corporate initiatives like continuing the expansion of their R&D department in addition to executing their long-term roadmap. On top of this, the money will help marketing expenditures related to lead generation and customer acquisition.
“We are very pleased to close this round of funding which will allow us to continue toward our goal of enabling customers on a global level,” said Michael Kadonoff, CEO at Braingrid. “Our team is excited and ready to enter our next phase of growth.”
The Toronto-based startup offers versatile sensor platforms that can capture real-time data for cannabis growers and help them increase revenues, while reducing costs and risk. The product is something that many producers in the field would be interested in once demand grows after legalization in Canada.
The sensors can identify and address microclimates and let a grower know about suboptimal conditions. If a producer uses Braingrid sensors and implements new grow equipment like LED lighting, they will be alerted to changes in quality and speed. Braingrid was initially started to help out a wide assortment of farmers but then the founders honed in on the cannabis sector.
Most recently, Braingrid partnered with Ample Organics to enhance the latter’s customer offering by leveraging wireless sensors with an enterprise software platform.
“We are dedicated to fostering innovation in the burgeoning Cannabis industry,” said Roger Dent, CEO at Quinsam. “Braingrid is aptly positioned to fill the ever-growing need for cultivation technology that assists growers in optimizing their cannabis grow. We are excited to see what is next for them.”
Braingrid is also planning to publicly list the company on the Canadian Securities Exchange within 90 days.