California marijuana company Vertical is talking to banks about an IPO for its CBD business and just raised a fresh $58 million in preparation

Vertical, a California marijuana producer, closed a $58 million funding round, led by Merida Capital Partners.will lay the groundwork for the company to spin off its hemp and CBD business into a standalone entityThey'll seek to list the CBD business, Vertical Wellness, on the NASDAQ by the fourth quarter of this year.

The series A round was upsized from $20 million to $35 million last year and was still oversubscribed due to investor demand, the company said. The round was led by Wallin said while they met with a lot of special situation groups at larger hedge funds — which he said have a"broader mandate" to pursue unique investments — they didn't end up participating in the round.

Vertical will use the new capital to build out new grow facilities on their California campus, and finish building a food and beverage manufacturing facility, said Wallin.

wow... this will be huge

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