Two California cannabis companies, San Diego-based March and Ash and Santa Rosa-based CannaCraft, have entered into a definitive agreement to combine their two companies, confirmed Bret Peace, co-founder, partner and general counsel of March and Ash, reported Forbes' Jackie Bryant.
Peace, who will retain his titles at March and Ash, will become the CEO of Groundwork Holding Inc., the holding company that will direct the newly combined entity. Forbes also noted that March and Ash and CannaCraft will retain their current organizational structures in their respective c-suites and that a new board will be formed to oversee the new company.
March and Ash is known as one of the best-known dispensary chains in the San Diego area with seven retail locations and a highly-functioning delivery service. CannaCraft, viewed as a powerhouse California cannabis company with legacy market roots, is known for its in-house cannabis brands Farmer and the Felon, Care by Design, AbsoluteXtracts, Humboldt Terp Council and others.
In 2019, the company reported $46 million in sales although shortly thereafter announced it was laying off 20% of its workforce. The merger has been in the works for at least six months, according to Peace and other sources.
Last fall, several current and ex-CannaCraft employees who requested anonymity confirmed to Forbes that there would likely be more layoffs at the company as a result of preparations for the eventual merger.
“This merger was done after many months of hard work,” Peace said. “The work ensured what we already know: that our values and vision for a locally-grown industry-aligned. Both companies decided to stay in the California market for the long haul. Neither of us have any intention of selling, but we could have. We have no intention of going public.”
In terms of the new holding company at the helm of the combined entity, Groundwork, its purpose is to “do the stuff in the background — the corporate, HR, finance, support functions,” Peace said. “Both March and Ash and CannaCraft’s integrity will be maintained. Groundwork’s purpose is to ensure two things: act as an interface between the board and the two companies and to make sure budgeting and strategic plans are in place to support both March and Ash and CannaCraft.”
