2019 has been a big year for Bay Area cannabis companies and, yep, it’s still only February 14th. Between only Caliva’s $75 million fundraising round last month, and news breaking today of Flow Kana’s $125 million round of private fundraising, an approximate $200 million has been pumped into NorCal cannabis ventures.

Flow Kana’s fundraising was led by Gotham Green, an NYC-based private equity group. Similar to Caliva’s plan for their new monies, Flow Kana is planning on bolstering operations while streamlining their supply and distribution chains. The move also suggests some elbowing and jostling between the two down the road for territory and partnerships in the Bay Area, but time will tell that tale. More importantly with regards to both companies and their fundraising is the emphasis both are placing on operations and distribution, within California and BEYOND. Why did we capitalize beyond? Because Caliva and Flow Kana, two smart companies, planning for distribution outside of the Golden State’s boundaries suggests they’re anticipating federal legalization sooner rather than later. This is a pattern of development we’ve observed with Canadian companies and other US companies, with the notable crossover hit of Summer 2018: “Constellation Investing $4 billion Into Canopy Growth.”

For Constellation-Canopy Growth, distribution was an inherent if overlooked at the time aspect of the deal. Based in Rochester, NY, Constellation’s proximity to Canopy Growth’s HQ in Ontario, a mere three hours by car, in addition to it being on I-90, means that the group is set up for great distribution not only from Seattle-to-Boston, but also directly into the major metro areas along the East Coast. For Flow Kana, Caliva, and everyone else serious about establishing a national footprint, distribution and operations are priorities 2a and 2b, just below “steady and voluminous supply.”

Caliva and Flow Kana, just like Canopy Growth-Constellation have ample supply in place, so it makes sense that with their recent fundraising rounds their prioritizing operations and distribution. With both companies being based in the Bay Area, I-80, and it’s easterly terminus in Teaneck, New Jersey, presents an obvious coast-to-coast avenue for distro.

Intriguingly, Flow Kana’s massive round of funding –a record sum for private fundraising in the US– may wind up only the second-most significant move in recent days for the company. The National Cannabis Roundtable, a newly formed lobbying group chaired by John Boehner of Acreage, has a partnership with Flow Kana, so yeah, good friends to have if you’re pushing for national distribution! NCR is prioritizing federal restrictions, fixing that whole “no banking or being allowed on financial markets” thing, correcting the federal tax situation, and continuing to garner support for legalization.

Some may argue that it’s still early in the nascent plant-touching industry’s day, but for those that are serious: the clock’s been ticking and the stakes are being claimed.