Cannabis-focused wellness company Resonate Blends, Inc. (OTCQB:KOAN) has closed on a $500,000 bridge funding round with two accredited investors who have funded multiple rounds with the company and another $250,000 committed, on the same terms.
The new funding is expected to allow Resonate to continue to innovate on its Cordial line by delivering two new formulations to the market, "Love", expected to be launched on Valentine's Day, and its "Sleep" product slated for the March timeframe.
In addition, the proceeds will help launch all eight blends in a new Cordial single-package in response to dispensary requests to be able to offer Koan Cordials as a register impulse product. The singles will also meet customer requests for variety packs and a less expensive point of entry as well as helping to support more cost-effective product sampling.
Resonate is also finalizing production of a 100ml multi-serving bottle which reduces the cost per serving by 60% from the current three-pack configuration. Finally, the company plans to explore expanding into other legal states with the Cordials and will also pursue strategic M&A roll-ups into the holding company.
"We are very proud of the company we have built over the past eighteen months," CEO Geoffrey Selzer stated. "We remained true to two of our core values that value-added brands are the future of cannabis and that innovation in this market is about refining the qualitative aspects of the experience. Our team has built a growing library of product development IP, won several awards including 'Best New Brand of 2021' from the Luxury Meets Cannabis Conference, developed a robust and innovative roadmap and we are supported by a family of dedicated investors. We are acutely focused on rapid revenue development that includes new products, new product formats, robust distribution agreements and a potential acquisition strategy all designed to push innovation and growth. While we have a lot of work ahead of us, we remain excited and inspired by what we see for 2022."
Resonate will also use these proceeds to continue investing in its own internal sales team.
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