Grown Rogue Enters Illinois Market with Lease of Dwight Cannabis Facility

Grown Rogue International Inc. announced it will enter the Illinois adult-use cannabis market through a partnership and lease agreement tied to a cultivation facility in Dwight, Illinois.

The Dwight facility, formerly operated by PharmaCann and owned by Innovative Industrial Properties, offers about 10,000 square feet of existing indoor flowering canopy with the ability to expand to 14,000 square feet,

The company, via its affiliate Grown Rogue Management Associates, has acquired a 49% stake in SEA Craft LLC, which holds a state-issued craft grow license. The deal includes an option to acquire the remaining 51% interest, subject to regulatory approval and performance milestones.

As part of the transaction, SEA Craft has leased a 66,000-square-foot cultivation and processing facility owned by Innovative Industrial Properties. The site, previously operated by PharmaCann until late 2025, includes approximately 10,000 square feet of active flowering canopy with capacity to expand to 14,000 square feet under Illinois regulations.

Grown Rogue is backing the Illinois expansion with approximately $4 million in total project capital. This includes a $3 million preferred equity investment from GRMA and $1 million in existing cash held by SEA Craft. The initial 49% stake was acquired for $1 million through a seller-financed note.

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The company expects to begin operations at the facility in the second quarter of 2026, pending approval from the Illinois Department of Agriculture, with product availability targeted for the fourth quarter.

Chief Executive Officer Obie Strickler said the approach allows Grown Rogue to enter the market more efficiently by leveraging an existing, fully built facility rather than undertaking new construction. The company estimates the strategy reduces both capital requirements and time to market by more than 60% compared to a typical new-build project.

Grown Rogue executives also emphasized the opportunity to acquire and improve underutilized cannabis assets, positioning the Illinois deal as part of a broader strategy to scale through distressed or turnkey facilities.