DENVER — Spherex today announced an agreement to acquire two cultivation facilities from The Cannabist Company (TCC) and its affiliates, The Green Solution (TGS) and Rocky Mountain Tillage (RMT), as part of TCC’s ongoing business restructuring.
The transaction represents Spherex’s first acquisition and a significant expansion of the company’s operations.
The expansion includes a Denver-area indoor cultivation facility and an outdoor cultivation operation in Trinidad, Colorado. Approximately 60 employees across the facilities are expected to join Spherex, growing the company from its current workforce to nearly 100 employees.
“This is a growth move for Spherex, but it’s also the result of how deliberately we’ve built this business over the past 11 years,” said Dan Gardenswartz, president of Spherex. “We’ve stayed focused on what we do well, maintained financial discipline and built strong relationships across Colorado’s cannabis industry. When this opportunity became available, we were in a position to act."
Spherex has sourced cannabis material from TGS for years, giving the company firsthand familiarity with the quality and consistency of the facilities’ output. B
ringing cultivation capabilities in-house will give Spherex greater visibility and control across its supply chain while supporting more consistent access to the material used in its products.
As Colorado’s cannabis supply chain continues to evolve, greater control over supply and quality can help Spherex reduce the risk of material shortages, support continued product consistency and create new opportunities for product development over time.
The acquisition comes as Colorado’s cannabis supply chain continues to evolve, with declining cultivation capacity contributing to greater volatility in the availability, cost and compliance of raw material.
Earlier this year, Spherex experienced those pressures firsthand, including supply constraints that created production backups and delayed orders.
Spherex will retain the existing leadership of the cultivation operations to oversee their day-to-day work. The company expects the facilities to operate under the Spherex umbrella following completion of the transaction.
Spherex also emphasized that the acquisition does not diminish the value of its longstanding relationships with independent Colorado cultivators. The company expects to continue working with cultivation partners as it integrates the new facilities and balances internally produced material with material sourced from the broader Colorado market.
The Cannabist Company started selling off assets earlier this year as it entered bankruptcy.
