EcoGen Laboratories, a company focused on the manufacturing and supplier of hemp-derived specialty ingredients and formulations, as well as private-label finished products in the United States, will announce later Tuesday it has closed a $40 million private placement with institutional investors.
“We are thrilled to announce the closing of our $40 million private placement,” Alexis Korybut, co-founder of EcoGen told Benzinga.
Korybut said the raise will be used to develop facilities, expand the company’s product offerings through research and development, and increase its marketing and sales efforts to widen the business’ global footprint.
“Through these expansions, our company will stay committed to providing the purest CBD on the market while also bringing new levels of innovation to the industry as a whole,” said Korybut.
The company also announced its revenue surpassed $80 million in 2019. According to management, EcoGen Laboratories supplies nearly 70% of the ingredients used in CBD product lines seen on the shelves of retailers like CVS Health Corp (NYSE: CVS), Sephora, and Whole Foods.
Last week, the company took an early step toward developing the nearly 20-acre property in Grand Junction, CO into its new national headquarters. When fully developed, the site will encompass everything from seed production to making CBD products. The Chamber of Commerce of Grand Junction presented the company for an award in December, recognizing EcoGen’s $25 million investment in the Grand Valley over the last two years.
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