A local company is taking on new funding and a new name.
Dallas-based MD Farma, a clinical cannabinoid company, announced raising a Series A funding round from local private equity firm Altacrest Capital. As a part of the deal, MD Farma will own and is taking on the name of Altacrest portfolio brand Corganics.
“With plans to rebrand this year, we chose to move forward as Corganics because the name truly represents our commitment to all-natural, organic therapeutic products,” a spokesperson for the company said via email.
The company did not disclose the amount of funding but said the investment represents a minority ownership in the company.
With the Altacrest investment, MD Farma acquired ownership of the Corganics brand and its most well-known topical pain analgesic cream, Relief. Altacrest initially acquired Corganics in 2019 for an undisclosed amount – marking the firm’s second acquisition since being founded in 2017. Now as Corganics, MD Farma is planning to add e-commerce and commercial distribution enhancements, in addition to forming a medical advisory group with specialties ranging from oncology and orthopedics to plastic surgery and general medicine.
The same year of Corganic’s acquisition, the state of Texas passed a law legalizing industrial hemp and CBD products. While a new law allows certain patients to be prescribed products with THC – the psychoactive compound found in cannabis, Corganics says its products contain no detectable THC. It also said its products are manufactured in a National Science Foundation-certified facility.
“With a lot of noise in the market about CBD products, we are eager to educate providers and patients on the importance of label transparency and quality ingredients,” said Chad Collins, MD Farma CEO and co-founder, in a prepared statement.
With the new funding, Corganics is investing in R&D, expanding its operations and reaching more health care professionals, which the company’s Relief brand is only available through. According to a press release, the company hinted at launching a consumer division, as well.
“Our goal is to bring the highest quality, safest and most transparent cannabinoid and other natural products to the market through physician dispensing,” the spokesperson said. “We will help health care professionals bridge the gap towards having a trusted source of cannabinoid therapy for their patients who are seeking safe, natural therapies.”
According to LinkedIn, MD Farma was launched in 2020 by Collins, a former vice president for Galderma in the U.S., and Reggie Gatewood, former U.S. sales lead for life sciences firm Sanofi. The 10-person company declined to disclose revenue or how much it has raised so far.
“We look forward to using this capital to expand our efforts to bridge the gap between providers and their patients,” Gatewood said via email.
