San Diego cannabis company sold for $27 million
SAN DIEGO (KUSI) – Ryan Lange doesn’t look the part of a big business tycoon, but he’s in the big leagues now, when it comes to the cannabis industry.
“This outcome is a big outcome. It’s obviously one of the bigger acquisitions that’s happened in the cannabis space,” Lange said.
The outcome he’s talking about is the $27 million deal that Lange and his partners signed earlier this month. We met Ryan, and his business partner, Mike Van in Van’s custom motorcycle shop in Mission Hills.
Mike, Ryan and a third friend named Chip who bonded through their love of motorcycles founded a company to sell cannabis consumer last April.
Using the same initials as Mike’s custom bike shop, they began to sell products under the label SDC or San Diego Cannabis. Some of the earliest items included flower, oil and an ice water hash.
The SDC products were quickly snapped up at dozens of dispensaries, in part because of the way they were marketed. SDC began to seek out partnerships to give their brands a “personality.”
Carey Hart, the motorcross star became one partner. The company also joined forces with Toy Machine, a skateboard company and Loki, the Wolfdog, an Instagram sensation.
Their objective was to make their products stand out, through associations with partners who had deep roots in very specific cultures and the added bonus of millions of social media followers.
Early on, they knew their marketing was a strength, but the San Diego enterpreneurs soon realized they needed more help and resources on the production end. That’s when a Canadian company called Next Green Wave jumped in.
On March 11, less than a year from their company’s inception, Ryan, Mike and Chip signed a deal to sell SDC to Next Green Wave for $27 million.
Under the terms of the merger acquisition, the founders of SDC aren’t leaving with barrels of cash. They’re getting stock in the new company, now rebranded as WEARESDC.
They said the hard work is just beginning, as they expand the company and add more product lines.
WEARESDC plans to sell eight brands with 45 different THC and CBD products, including CBD dog biscuits as part of the Loki line. The entrepreneurs said their goal is to become a dominant player in the consumer cannabis market.
“I would say five years from now, we plan on being THE company in California for cannabis,” Van said.