California,California,$3,000,000,Licensed,Distribution; Manufacturing / Processing; Cultivation;

$3,000,000

Details

Investment, Lending, or Joint-Venture Opportunity

Award Winning Licensed Cultivator

If you’re looking for a worthy investment in the legal, California cannabis industry THEN TAKE A LOOK AT THIS. A slow growth strategy, cannabis cultivation company is looking to grow its footprint throughout the state, country, and even internationally. The executives have extensive experience in technology, advertising and cannabis. The CEO has worked with Senators and CEOs of Fortune 500 companies educating them on how to leverage innovative technologies, and was also part of three early stage startups through exits: Savatar, The Hyperfactory, and Snakk Media. He brings over 25 years of emerging media, digital interactive and mobile marketing experience. This is a winning group with an intelligent business plan and exit strategy.

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Company Info: The company is a 35x award winning small batch luxury, cannabis brand located in Sonoma and Mendocino, CA – one third of the coveted Emerald Triangle of Northern California. The company was founded on the fundamental principles of hard work, integrity, and a relentless commitment to excellence. They believe how you do anything is how you do everything.

Key Facts About The Company: 

  • First medical license in Sonoma County 215 heritage – all founders and shareholders are here due to belief in cannabis as a medicine and have personal health stories to share that have caused them to go all in!
  • IP Cultivation pioneers of rare, exotic and reserve strains commanding top prices in CA. Demand exceeds their current supply.
  • 35x award winning flowers on top shelves throughout CA with their own IP either branded as Atrium Cultivation or white labeled.
  • Launching a member’s community direct to patient and direct to adult use platform.
  • Evolving their brand into global licensing via disruptive adult use and medical biotech deals.
  • Seeking a biotech thought leader to help us move into FDA/DEA clinical trials of their genetics.

IP Licensing Income Potential:

  • Forecasted revenue per annum on licensing deals from existing indoor facility at 10% IP Royalty can be up to $1.8M per annum once facility is expanded. Note, peers in their industry are charging up to 25% per annum on licensing fees.
  • The company has been approached by many different states and countries to explore licensing deals. Specifically, 5 contacts in 6 different countries have contacted us regarding bringing their IP and Standard Operating Procedures (SOP’s) to their country. In the U.S., 7 operators in different states have contacted the company to license their IP and SOP’s

Total Ask $4M:

  • Solidify their annual license at their current indoor cultivation site and upgrade equipment to drive cost savings and efficiencies: $1M
  • Property Acquisition: Mixed light property they can increase up to 5,000 sq ft of provisionally to make the facility profitable after year one of operations. $1M
  • Marketing and sales to drive customer acquisition for their members club: $500K
  • Property Acquisition: Seeking a distro, manufacturing, processing, non-retail delivery licensing set of assets to become vertically integrated. $1M
  • Develop and install their licensing model powered by “Future Crop Exchange.” into cultivation operations worldwide. Forecasted budget: $500K

ROI Timeline:

  • Cultivation A1 indoor: $4.6M per annum gross on a DTC revenue model. Note: A1 can 4x this revenue post being awarded annual license and upgrading the facility from 50 lights to 200 lights. Total revenue potential: $18.4M
  • Cultivation Mixed Light: $5.7M per annum gross on a DTC revenue model.
  • IP Licensing – Atrium Cultivation can commit to 10% of gross revenues to new licensing co. which will be a wholly owned subsidiary of their holding company.
  • Exit ROI: The company is building their businesses to be positioned for a merger and or acquisition. They believe that upon federal descheduling in the U.S. larger national and global brands will need to make acquisitions to enter the category or increase market share by way of mergers and acquisitions.
  • ID: 18811
  • Published: February 1, 2024
  • Last Update: February 6, 2024
  • Views: 22