At the Benzinga Cannabis Capital Conference in early June, David Feldman, Partner at Hiller PC and Skip Intro Advisors, interviewed C3’s CEO Ankur Rungta.
Raising Capital Organically While Staying Competitive
Feldman began the conversation by mentioning that a multistate operator (MSO) doesn't equate to having a presence in every state. He asked Rungta, “When deciding what markets to enter, what makes a state attractive to C3?”
Rungta responded, “We’re an unusual MSO in the industry, mostly because we’ve built our four-state portfolio organically; we've essentially done no M&A [mergers and acquisitions] to date. Most of our development has been our own efforts of obtaining and securing licenses, building out and then starting operations. This reflects our more deliberate and step-by-step approach to the growth of our business.”
Rungta points out the importance of intention behind each decision, by choosing to enter highly competitive markets in the beginning and learning to compete, and more recently, going after limited licenses and seeking out markets with less competition and higher margins.
“We really cut our teeth in Michigan and Oregon, and are now bringing that approach and discipline into markets like Missouri and Massachusetts” Rungta commented.
By securing development in Michigan and Oregon, C3 has been able to seek expansion into competitive markets such as Missouri and Massachusetts where licensing is more challenging.
Two of the three founders have a corporate finance background, so strategy and patience aren’t foreign tools for the C3 team. The utilization of skills has allowed the company to save on specific …