BOSTON, Oct. 18, 2017 /PRNewswire/ -- In an unprecedented move, direct investment healthcare funds Provident Healthcare Capital (PHC) and Dey Investment Group (DIG) are entering the cannabis sector with a $2 million commitment in seed funding towards CLIMB Holdings, LLC, an acronym for Cannabis Lifestyle Innovation Marketing and Business.
Backed by an executive leadership team with expertise in healthcare, investment banking, venture capital, marketing and cannabis, CLIMB seeks to provide high-quality, safe and effective products to consumers in the medical, wellness and recreational spaces. This will be achieved with funding towards a diverse portfolio of companies that will power the mainstream emergence of cannabis and its benefits.
"Rarely do you see the conventional healthcare direct investment sector backing companies in the cannabis industry, which is why this move is not just transactional, it's transformational," said Robert Ciardi, managing partner and founder of PHC. "By combining our resources with some of the brightest minds in the medical field, we will ultimately save lives and increase safety for recreational consumers."
The healthcare industry's passiveness to promote the safe, effective and appropriate use of medical cannabis has been attributed to the competitive advantage medical cannabis could have over big pharma should it replace common prescription drugs used to treat conditions such as chronic pain, cancer and epilepsy, to name a few. It's estimated that national legalization of medical cannabis could decrease pharmaceutical sales by upwards of $4 billion annually, according to a 2017 New Frontier Data study.
Bobby Dey, MD, president of DIG and retired physician, believes that in certain cases physicians can reduce the dosage of opiates used to relieve pain by prescribing medical cannabis ointments. This could help diminish and, with further development, reverse the opiate crisis, which has become the leading cause of death in the U.S. for individuals under age 50.
Prior to entering the cannabis sector, Dey co-founded The Center for Pain Management, now known as the National Spine and Pain Center, LLC, which has become the largest pain management practice in the nation and one of the leading prescribers of opiates.
"Cannabis is a thriving business sector with the power to save lives," Dey said. "While opiates will always have a place in the medical field, it is imperative that we incorporate medicinal cannabis into pain treatment and lead the charge in reducing the nation's opioid epidemic."
In addition to medical cannabis treatments, CLIMB is funding a wellness line of products to emphasize consumer well-being and an active lifestyle. The medical and wellness lines will be available in the first quarter of 2018. The recreational products, created by CLIMB subsidiary Mezz Brands, are currently available in California, Colorado and Nevada and emphasize proper dosing, high-quality ingredients and responsible consumer education as part of the recreational lifestyle.
"CLIMB is not only a strategic business investment that will support budding companies, it is an avenue that will revolutionize the cannabis industry across its major touchpoints and improve our country's health and wellbeing," Dey said. "CLIMB is actively seeking partnerships with cannabis-related companies that share in the passion for creating innovative, high-quality brands and products."
CLIMB Holdings, LLC, an acronym for Cannabis Lifestyle Innovation Marketing and Business, is a leading-edge company created to build a group of powerful trusted brands connected by shared values and anchored in a passion for cannabis education, proper dosing, premium products and a commitment to innovation. Fueled by funding from Provident Healthcare Capital and Dey Investment Group, CLIMB is dedicated to supporting cannabis companies that focus on inventive pain management treatment, high-quality wellness products and premium lifestyle products.
About Provident Healthcare Capital
Provident Healthcare Capital, an affiliate of Provident Healthcare Partners, is a direct investment fund dedicated to helping healthcare services companies achieve their growth objectives. Through a direct investment fund, which includes the principals of Provident as well as institutional and high-net worth investors, PHC provides early-stage funding as well as growth and buyout capital for more mature operating companies.
About Dey Investment Group
Dey Investment Group is a direct investment company that seeks to partner with diverse business ventures to help advance meaningful lifestyle and health initiatives that positively impact society. Founded by retired physician, Bobby Dey, MD, current ventures include CLIMB Holdings, LLC, as well as investments spanning the housing, transportation, health and wellness sectors.