C21 Investments Inc.–a Vancouver-based, vertically integrated cannabis company that cultivates, processes and distributes cannabis- and hemp-derived consumer products in the United States–completed its acquisition of Oregon-based Swell Companies Limited May 27, marking the Canadian company’s fifth acquisition in the United States.
The acquisition, announced in July 2018, is part of C21’s broader vision of multistate expansion. In addition to Swell, the company has acquired Eco Firma Farms and Phantom Farms in Oregon, as well as Silver State Relief and Silver State Cultivation in Nevada.
Swell employs 41 full-time workers at its 10,000-square-foot processing facility in Portland and has expansion rights for an additional 18,000 square feet adjacent to the current facility, according to a company press release. At its current size, the facility has the capacity to reach up to 5,000 pounds of raw material throughput per month, which translates to 220,000 to 270,000 grams of processed, oil-based extracts per month, according to a press release. According to the company, Swell’s expansion will allow it to process an additional 1,200 pounds of raw material per month for an additional 65,000 grams of extracts per month.
“Consumption of cannabis oil-derived products, such as vapes, has grown substantially across all markets,” said Swell CEO Alleh Lindquist in a public statement. “This segment is quickly becoming the most significant component of the industry, and with the support of C21, Swell is poised to rapidly expand its consumer packaged goods product offerings in existing and new markets.”
Swell currently manufactures THC and CBD oil, encapsulates and vaporizers, which are distributed under the Dab Society Extracts and Hood Oil brands. Overall, more than 50 of Swell’s branded products are sold in over 275 licensed retail locations across Oregon, according to the press release.
“Acquiring Swell fulfills a critical segment of our expansion strategy, positioning C21 as a competitive player in the rapidly growing consumer packaged goods segment of the industry by bolstering our extraction and manufacturing expertise across all of our operations,” said C21 President and CEO Robert Cheney in a public statement.
