Cannabinoid therapeutics company FloraWorks secured the remaining portion of its Series A and raised a total $2.25 million to further study the potential of certain novel cannabinoids for treating sleep disorders and other unmet medical needs.
The round was led by Bonaventure Equity LLC, which invests in cannabinoid and psychedelic discoveries. Also included in the round was ArcView Group, which works in the cannabis and hemp industries, and a high-net worth individual, the company said in a news release.
Milwaukie-based FloraWorks specializes in discovery and commercialization of novel cannabinoids. A big focus right now is the nonintoxicating cannabinoid known as CBN, or cannabinol.
CBN is scant to nonexistent in cannabis naturally, but forms from THC as pot grows old. FloraWorks makes CBN from hemp oil by speeding up the oxidative process and then purifying the output into a crystalized, CBN isolate.
FloraWorks supplies CBN to other manufacturers. The cannabinoid is popular in the edibles market.
The company is also investing in studies to show its use as a therapeutic. This funding will help with that work for the 10-person company.
“We're incredibly excited about the closing of our Series A. This boost will provide us with the resources we need to make significant progress in our cannabinoid discovery initiatives,” said co-founder Michael Thale in an email. “Additionally, it will allow us to bolster our staffing needs. We're looking forward to welcoming three new team members, ranging from lab technicians to operational support.”
The company sees potential for CBN as a sleep aid and has been working on an efficacy study to boost its claims.
FloraWorks CEO Alleh Lindquist described the investment groups involved in the round as “long-term-minded" and value-added.”
For its part, BVE founder and Managing Partner Ross O’Brien said that FloraWorks fits into his firm’s strategy of working with companies that are ahead of the market. FloraWorks has proprietary processing technology and extensive research and development work into sourcing new cannabinoids.
The global cannabis pharmaceuticals market is expected to hit $127.1 billion by 2028, according to market research cited by FloraWorks.
In Oregon, CBN is legally available only through recreational-use channels after state cannabis regulators put limits on products containing “artificially derived” cannabinoids. Those rules were set to extend to licensed cannabis retailers this July, but in April state regulators extended the deadline another 18 months to Jan. 2, 2025.
