On August 22nd, 2018, Tuatara Capital, L.P. and Connecticut Pharmaceutical Solutions, Inc. announced the finalization of the acquisition of CT Pharmaceutical Solutions, a.k.a. CPS, Inc., a licensed medical cannabis cultivator in the State of Connecticut from its previous owners.
Previous Owner “Diverting Marijuana”
Late last year, a principal of the Portland-based CT Pharmaceutical Solutions was forced to surrender his medical marijuana employee license as he was charged by local police after the state Department of Consumer Protection reported an anonymous tip that he was “diverting marijuana” from the facility.
While CT Pharmaceutical Solutions owner Andrew Bozzuto had to surrender his license, the company was still operating and cooperating with police. The company and its employees faced no other discipline, and the company’s license has not been suspended or surrendered.
Tuatara Capital’s Connecticut Investment
As one of just four licensed cannabis cultivators in the State of Connecticut, it comes as no surprise that Tuatara Capital saw an opportunity to step in.
Tuatara Capital, L.P., a New York-based private equity firm, led the acquisition of CPS, Inc. through its flagship funds, Tuatara Capital Fund I, L.P. and Tuatara Capital Parallel Fund I, L.P..
As a specialized alternative investment manager founded in 2014 to support the legal cannabis industry, Tuatara currently manages over $124 million in cannabis-focused assets.
The New Connecticut Pharmaceutical Solutions
Originally founded in 2013, Connecticut Pharmaceutical Solutions, Inc. is the leading medical cannabis licensed producer in Connecticut. The new CPS, Inc. will be a medical cannabis research and production company focused on the utilization of science and technology to develop innovative cannabinoid treatments that improve the quality of life for patients in Connecticut.
The CPS, Inc. team has senior professionals with backgrounds in finance, sales, pharmaceutical production, healthcare management, indoor cultivation, genetics, and biochemistry, and will be led by Chief Executive Officer, Tom Schultz, and Chief Operating Officer, Rino Ferrarese.
“Tuatara Capital is extremely pleased to welcome Tom, Rino, and the CPS, Inc. team to the Tuatara family,” said Marc Riiska, Partner at Tuatara Capital, L.P. “We applaud the work that this management team has done to build a truly differentiated platform and product set, providing needed medical relief to suffering patients in Connecticut, and we look forward to assisting them in their quest to further cannabinoid-based medicine.”
Tom Schultz, Chief Executive Officer, CPS, Inc. said, “We are pleased and proud that Tuatara has chosen to work with CPS, Inc. within Connecticut’s medical marijuana program. Given its quality and variety of product, with every batch tested by independent laboratories and dispensed by pharmacists, we think Connecticut has the best and safest medical marijuana program in the United States. We look forward to executing our expansion plans to meet the needs of Connecticut’s patients in partnership with Tuatara.”
CPS, Inc. manufactures pharmaceutical-grade medical cannabis products across a broad spectrum of categories including dried flower, extracted concentrates, vaporizers, tinctures, oral tablets and sprays, and topical treatments. CPS, Inc. is focused on the advancement of cannabis plant science and employs state-of-the-art technologies to create new cannabinoid treatments for medicinal cannabis patients across Connecticut.
The company, which operates from a facility in Portland, is one of the four licensed producers of medical cannabis in the state, supplying a network of nine medical dispensaries. CPS, Inc. is currently finalizing an expansion of its existing facility, while also making plans to significantly further expand its cultivation and production footprint to stay ahead of the state’s growing patient count. This planned expansion will help to ensure that medical cannabis patients across Connecticut will continue to have ready access to an appropriate supply of the high-quality medicine that they require.
“We’ve had the opportunity to get to know the CPS team in the 2 years Tuatara spent exploring the Connecticut medical cannabis market, and we are very excited to be in a position to help management drive the company’s next chapter of growth,” said Al Foreman, Partner at Tuatara Capital, L.P. “The State of Connecticut, through the Department of Consumer Protection and the medical cannabis program, have properly set a high bar for its patients and operators alike, and Tuatara looks forward to doing our part to ensure the continued success of such an important healthcare initiative.”
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