Eaze recently announced that it plans to become one of the largest cannabis delivery firms in the United States. The Bay Area-based firm, one of the first on-demand cannabis delivery services, is preparing to buy cannabis merchant and producer Green Dragon, operating at the Florida and Colorado markets.
When combined with Eaze’s current businesses in California and Michigan, the purchase would give Eaze access to the four major cannabis markets in the United States.
Two years ago, Eaze was not sure whether it would be able to stay in business. As per TechCrunch, the company was having difficulty acquiring financing and had to make unexpected layoffs. The firm was transitioning from delivering to functioning as a delivery dispensary. Eaze was the Uber of marijuana, trying to become the Amazon of marijuana.
Keith McCarty established the company in 2014 and has successfully raised approximately $255 million so far. The firm has gone through three CEOs, with Rogelio Choy serving as the current CEO since 2019. Jim Patterson, the company’s former CEO, has admitted to a $100 million plot to mislead banks into processing credit and debit payments for cannabis transactions.
The complaint is identical to one filed against Eaze in 2019. However, Eaze denied any participation and is not a defendant in Patterson’s case. The future remained uncertain, but currently, it is seeking additional funding and is on course to become the country’s largest multi-state cannabis delivery business.
In 2019, the firm shifted gears and concluded a previously announced $90 million Series D funding transaction in August 2020. Eaze is attempting to close a $75 million Series E funding this year, which is 80% of the money already committed. This round is expected to close in November, according to the firm.
According to TechCrunch, this round will value Eaze at more than $700 million, which is double the 2019 fundraising valuation. The expected funds will be utilized to fuel further retail development.
“The firm is quite different,” says Cory Azzalino, Eaze Chief Strategy Officer, justifying the increased valuation. Moreover, the California operations are bigger in terms of revenue than they were in 2019.
Eaze is currently rolling high as a national cannabis company. It started earlier on that it is working on expanding its delivery service to Michigan, one of the biggest markets of cannabis.