Blühen Botanicals, a Tennessee-based hemp cannabidiol (CBD) company, announced that international cannabis business SOL Global Investments Corp. is making a $30.6 million investment in Blühen as part of its plan to diversify into hemp-related businesses through HeavenlyRx Holdings.
The investment gives the Knoxville-headquartered company the financial and organizational platform to pursue its product rollout strategy across the United States and around the world. Market research firm Brightfield Group predicts that the CBD industry will be worth $22 billion by 2022.
“This investment from SOL Global, one of the biggest players in the global cannabis and hemp ecosystem, gives us the firepower to accelerate our growth strategy, and take advantage of the significant opportunities we see right now in the United States and around the world,” said Joe Fox, Blühen Botanicals’ Co-Founder and CEO. “The SOL Global team sees Blühen as a critical element in their aggressive CBD market expansion plans. Their investment in our vision provides us the confidence and capital to empower our success and longevity.”“SOL Global’s investment enables us to exponentially scale our existing high-throughput capabilities while maintaining our commitment to providing the highest quality, pharmaceutical grade products on the market,” added Fox. “We have the largest network of expert farmers in the state of Tennessee who are growing hemp organically, and now, we’re empowered to scale our existing facilities faster, expand our farming network wider, and implement the highest international regulatory standards across the board.”
“This partnership will make Blühen the exclusive supplier of bulk extracts to HeavenlyRx,” said Brady Cobb, CEO of SOL Global Investments. “CBD is the primary cannabinoid available in North America, but there are more than 100 cannabinoids that will soon enter the market. This partnership will allow Blühen and HeavenlyRx to scale globally.”
Blühen’s commitment to scalable and diverse distribution springs from early strategic partnerships across the hemp industry’s growing supply chain. The uses of hemp CBD for pain, anxiety, and overall wellness have created a growing demand for the hemp crop. “Our goal is to produce the most premium and wellness-focused hemp CBD products, from seed to consumer,” said Erich Maelzer, Director of Horticulture/Co-Founder of Blühen. “Our products are based on scientific research performed in our dedicated R&D facility and in the hemp fields of local farmers growing hemp using Blühen guidelines.”
The vertically-integrated company employs farming advisors who work directly with hemp farmers to meet Blühen’s premium standards. The company also employs expert entomologists, plant pathologists, agronomists, chemists, and engineers on the 30-person team. The investment from SOL Global will enable Blühen to invest further in expanding its team and capabilities over the coming months
The next growth phase of the company includes opening wellness-focused retail locations throughout the country, beginning with its 4,086 sq. ft. flagship store in its hometown of Knoxville, Tenn. The retail store will be Blühen Botanicals’ fifth operation in Knoxville. Blühen’s boutique wellness products will be available for purchase in the Knoxville store and on the company’s website on May 17. Blühen’s next retail location will be in Fort Lauderdale, FL later this year.
As part of Blühen’s strategy to build a vertically-integrated supply chain, the company has also entered into agreements to purchase farmland in multiple states in addition to its partnerships with hemp farmers throughout the U.S.
