Chicago cannabis company Grassroots raises $90 million

Grassroots Cannabis joins a flurry of dealmaking in the marijuana business.

Investors keep crowding into the marijuana business, as momentum builds for legalization in Illinois and other states.

Grassroots Cannabis says it raised $90 million, more than double the amount it initially sought late last year. The Chicago-based company has 400 employees and operates in Illinois, Nevada, Pennsylvania, Michigan, Maryland, Oklahoma, Ohio, Vermont, North Dakota, Arkansas and Connecticut. It has raised $165 million so far.

It’s one of several Illinois companies that have scrambled to raise cash in the past year amid a massive land grab in the cannabis business.

Chicago-based GTI raised more than $100 million before going public on the Canadian Securities Exchange last summer, raising $67 million. Cresco Labs raised $205 million before going public in Canada in December.

Oak Park-based PharmaCann sold to MedMen for $682 million in stock. Chicago-based Verano Holdings said last week it would sell to Phoenix-based Harvest Health & Recreation for $850 million in stock.

- John Pletz

Sean Doyle