Big tobacco buys into cannabis
Sanity Group, a German cannabinoids company, raised $37.6 million in Series B funding led by British American Tobacco.
Why it matters:: This is the largest-ever funding round for a European cannabis startup, and also reflects how legacy tobacco giants are seeking to diversify beyond their nicotine-stained staples.
- Other investors in Sanity Group include Snoop Dogg's Casa Verde Capital, Redalpine. Scooter Braun, HV Capital, Calyx, TQ Ventures, Atlantic Food Labs, Cherry Ventures, Bitburger Ventures, SevenVentures, GMPVC, Navy Capital and SOJE Capital.
More, per Bloomberg: "Nearly half of the amount will go toward strengthening Sanity’s medical business, while the company will spend the rest on preparing for the potential legalization of recreational marijuana in Germany."