Spherex, Colorado’s Top Cannabis Brand, Acquires Two Colorado Cultivation Facilities to Become Vertically Integrated

The company’s first acquisition will more than double Spherex’s workforce, expand the brand into cultivation and strengthen control over its supply chain

DENVER--(BUSINESS WIRE)--Spherex, Colorado’s leading cannabis brand, 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. We know these facilities, we know the quality of the material they produce and we know many of the people behind them. Bringing those capabilities into Spherex takes our operational philosophy to the very start of the supply chain and gives us new ways to better serve our retail partners and end consumers. Ultimately, we are investing in the long term success and prosperity of our industry, which directly benefits our business, our peers, our customers and the State of Colorado.”

Spherex has sourced cannabis material from TGS for years, giving the company firsthand familiarity with the quality and consistency of the facilities’ output. Bringing 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.

“Ultimately, everything comes back to the consumer and their experience. Greater stability in our supply chain means greater consistency in the products we make and greater confidence that those products will be available when our customers want them. It also gives us the flexibility to explore new products and categories as opportunities emerge,” said Ryan Hunter, Chief Strategy Officer of Spherex

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. Bringing cultivation capabilities in-house will help the company maintain the operational efficiency and product availability that have become hallmarks of the Spherex brand.

“We’re especially proud of the people side of this,” Hunter said. “There are talented teams already doing good work at these facilities, and this transaction allows that work to continue. We’re not coming in because these operations need to be rebuilt from scratch. We see strong teams and strong capabilities that we can build on while welcoming them into the culture we’ve worked hard to create at Spherex.”

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.

“We tremendously value the partnerships we’ve established over the years, and those relationships remain important to our business,” Hunter said. “This acquisition gives us another source of predictability and stability in our supply chain. It doesn’t change the respect we have for the partners who have helped Spherex grow into the company it is today.”

Customers are not expected to see immediate changes as a result of the transaction and will continue working with the same Spherex sales teams, products and points of contact.

About Spherex

Founded in Colorado, Spherex is a leading independently owned cannabis brand known for its award-winning vape cartridges, all-in-one vape devices and functional gummies. Backed by an advanced manufacturing facility and a seasoned leadership team, Spherex has achieved growth by engaging and uplifting its community while focusing on operational efficiency and fiscal discipline. The brand is centered on providing cannabis products that meet consumers at every value tier, delivered by a team that’s passionate about creating the highest quality cannabis products available. For more information, visit wearespherex.com