Grown Rogue International Inc. has finalized the acquisition of the remaining 30% minority interest in its Illinois subsidiary, Rogue EBC, LLC, for a total of $1.5 million. This strategic move, announced on September 22, 2025, elevates Grown Rogue’s ownership stake in its Illinois cultivation project from 70% to 100%. The transaction is subject to final approval from the Illinois Department of Agriculture.
This consolidation marks a significant step in Grown Rogue’s expansion into the burgeoning Midwest cannabis market. The company, which traces its roots to Oregon’s Rogue Valley, a region renowned for its deep cannabis heritage and quality cultivation, specializes in producing high-quality, craft indoor cannabis flower.
Transition to Full Ownership
The $1.5 million acquisition payment is structured to ease the financial outlay, with $500,000 paid at closing. Further installments include $500,000 due in six months and the remaining $500,000 payable either 15 months from the closing date or upon the first harvest, whichever occurs first.
Obie Strickler, CEO of Grown Rogue, expressed enthusiasm for the complete consolidation. “We are pleased to have this consolidation complete, setting the stage for the development of our Illinois project to continue,” Strickler stated. He further elaborated that the acquisition was an opportunistic decision driven by the minority partner’s request for liquidity, a situation unrelated to Grown Rogue’s performance. “Increasing our ownership at an attractive price before we’re operational is a logical step,” Strickler added, referencing the company’s success in efficiently producing craft-quality flower across its other markets.
Strategic Market Entry and Synergies
Grown Rogue initially entered the Illinois market through a joint venture, Rogue EBC, LLC, formed in March 2024. This venture acquired CannEquality, LLC, which holds a valuable craft growers license in Illinois. The company secured a lease for a roughly 50,000-square-foot facility in Waukegan, Illinois, with plans to develop up to 14,000 square feet for cultivation and manufacturing. Construction was projected for completion in the first half of 2025, with a first harvest anticipated in the second half of the year.
Strickler highlighted the strategic similarities between Illinois’ market structure and that of New Jersey, where Grown Rogue has recently launched operations and seen success. This perceived alignment suggests that Grown Rogue can replicate its proven model of efficiently producing craft flower in Illinois.
Growth Trajectory and Operational Advantages
Consolidating 100% ownership of the Illinois subsidiary is expected to eliminate governance complexities and streamline decision-making, thereby accelerating the development of the Illinois project. This move also positions Grown Rogue to fully capitalize on the growing Midwest cannabis market. Illinois has emerged as a significant player in the U.S. cannabis landscape, with sales surpassing $2 billion in 2024.
Grown Rogue’s operational footprint currently extends across Oregon, Michigan, and New Jersey, with ongoing expansion in Illinois. The company’s commitment to craft values, combined with disciplined execution, has allowed it to build a scalable and capital-efficient platform designed to thrive in competitive markets.
The acquisition underscores Grown Rogue’s strategy to pursue capital-efficient methods for market expansion, aiming to deliver premium, craft-quality cannabis products at fair prices. This latest news follows a series of developments for the company, including its entry into the New Jersey cannabis market and its continued focus on operational excellence across its portfolio.
Conclusion
By securing full control over its Illinois operations, Grown Rogue International Inc. is poised to further integrate its business and accelerate its strategic objectives in a key growth market. This acquisition, coupled with its established success in other states and its Oregon roots, solidifies the company’s position as a prominent player in the evolving cannabis industry, with this latest news highlighting its forward momentum.
