Posted November 17, 2018 11:10:17California’s largest medical marijuana company, Gout Medicine, has received a $1.2 million infusion from an anonymous investor, according to a report.
Gout Medicine was founded by medical marijuana patient and entrepreneur Joe Osterman, who has been in the cannabis industry for decades.
Ostermen is now the CEO of Gout.
In a statement released Wednesday, Gourmia said the funding was secured from a California-based venture capital firm, the ArcGis Capital Partners, and was intended to support the company’s expansion.
The investment will help Gout grow and accelerate its business model, the statement said.
Gout has raised $1 million in venture capital in the last six months, the company said.
California has the highest percentage of medical marijuana patients in the country, according the California Department of Public Health.
About 10 percent of California residents have a medical marijuana card, compared to 5.5 percent in Arizona, 3.7 percent in Nevada, 2.7 in Washington, and 2.6 percent in California, according a report by the Arcgis.
Gourmia, which is also the company behind the California strain of marijuana called Gourmand, is expected to open a medical cannabis dispensary in the San Jose suburb of Sunnyvale later this year.
Gourmades business model relies on its customers getting a prescription for a prescription-only medicine from a doctor, according in the statement.
Gost, a subsidiary of Groupe Gout, is currently in talks with another Silicon Valley-based marijuana company called Green Box Cannabis, according ArcGists report.
The Green Box plans to open its first medical marijuana business in 2020.
Green Box Cannabis was founded in the city of San Jose in 2017 by two former Green Box employees, the San Francisco Chronicle reported.
The company has a strong focus on marijuana and its relationship with Green Box has been rocky, according Ostermans biography on the company website.
Osterman told the Chronicle he decided to sell his company in May, months after the Arcigists report, and that he’s hoping to re-launch Gout in the next few months.
The startup is seeking to raise $1 billion in a round led by the private equity firm DST Venture Partners.