Grown Rogue International announced that on March 11, 2026, it entered into a series of definitive agreements with its affiliate, Grown Rogue Management Associates (GRMA), and SEA Craft, LLC to operate a cannabis production facility in Dwight, Illinois. The 66,000-square-foot-facility was formerly operated by PharmaCann. PharmaCann shuttered its operations and initiated layoffs in late 2025/early 2026 because of financial pressure and lease defaults.

GRMA (80% owned by Grown Rogue) acquired a 49% interest in SEA Craft, the holder of an Illinois craft grow license and an existing cash balance of $1.0 million, with an option to acquire the remaining 51% subject to regulatory and performance-based considerations. The facility is owned by Innovative Industrial Properties, Inc. (IIP). Subject to approval by the Illinois Department of Agriculture, SEA Craft expects to commence operations in the second quarter of 2026, with product availability targeted for the fourth quarter of 2026.

SEA Craft entered into a lease for a fully constructed cultivation and processing facility totaling 66,000 square feet, including approximately 10,000 square feet of existing indoor flowering canopy, a 43,000-square-foot industrial building, and an adjacent 23,000-square-foot greenhouse that is not currently planned to be utilized. The facility has the capacity to expand to 14,000 square feet, which is permitted under the craft grow license.

Transaction includes a social equity partnership and $4.0 million of project capital. GRMA completed a $3.0 million preferred equity investment to support SEA Craft’s projected capital needs.

“We are excited to enter the Illinois adult-use market in a highly capital-efficient way,” said Obie Strickler, Chief Executive Officer of Grown Rogue. “Based on our experience in New Jersey and our current budget in Minnesota for Phase I new-build market entries, we have typically planned for approximately $10 million or more of upfront capital, including working capital, and roughly a year of construction before we can take occupancy and begin growing flower. By stepping into the lease of an existing facility and planning for modest upgrades, we believe that we cut the cost and time to market by more than 60% compared to one of our new-build projects, to less than $4 million and under 9 months, respectively, assuming normal timelines for regulatory approvals. We anticipate similar revenue and profit potential with this approach, which would then translate into improved return on invested capital. We also believe it provides a practical framework for evaluating additional distressed and turnkey opportunities in the future, as we seek opportunities to apply our capabilities and build our platform. I’ve particularly enjoyed seeing our operations team respond to this opportunity with the enthusiasm required to deliver on our quality and efficiency standards. With $4 million of project capital, we are fortunate to be entering Illinois with the pre-funded balance sheet to expand the facility at the right time.”

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