Business Overview

Special opportunity to acquire a pharmaceutical grade cannabis extraction and processing facility designed for large volume production of the highest quality concentrates, distillate and crude. This facility was conceived and constructed in anticipation of the more rigorous manufacturing standards to be imposed on cannabis operations in the future. Painstaking attention to detail, combined with installed, tested and permitted top-line equipment, have created a facility that can process more than 60Kg of cannabis biomass per week and produce a full spectrum oils that are terpene and THC rich. The facility also produces a broad range of concentrates, including shatter, wax and crumble, and pre-rolls. Other concentrates can be produced with readily available and affordable equipment enhancements. All products have received excellent customer feedback for quality and taste and are produced and packaged under Seller’s brand or white labeled for third parties. There is ample room for expansion in the 11,250 square foot building, licensed for Type 7 Volatile Extraction Manufacturing & Type 11 Distribution. Seller financing available for most of the purchase price in the form of a 5 year, partially amortizing note. NDA and POF required.

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Financial

  • Asking Price: $4,799,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2020

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:11,250
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

11,250 square foot two story building, completed in 2020, specifically for cannabis manufacturing and distribution. Power is 3 phase 120 volts. Attractive and bright interior design, with a showroom on premises. 14 parking spaces on site. Designed for optimum throughput, the facility is also easy to clean and sanitize, and has designated areas for storage, packaging and shipping. The facility is located in a cannabis industrial business park, off a major freeway in the greater Palm Springs area, in a very cannabis friendly city. From receiving and storage to final packaging and shipping, all of the equipment, software and hardware, and utilities are in place. Proprietary methods with SOPs that define every step to ensure reproducibility are included.

Is Support & Training Included:

Key staff available to stay on and Seller will assist in the transition.

Purpose For Selling:

Owner is retiring.

Pros and Cons:

The vertical integration of the extraction of oil and distillate, for the processing of products, ensures a high level of quality control and excellent products.

Opportunities and Growth:

There is ample room to expand any processing activities and to facilitate larger distribution activities.

Additional Info

The venture was established in 2020, making the business 2 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals resolve to sell businesses. However, the real factor and the one they tell you may be 2 completely different things. For instance, they may state "I have way too many various obligations" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may simply be justifications to attempt to hide the reality of changing demographics, increased competitors, recent decrease in incomes, or an array of various other reasons. This is why it is really essential that you not count totally on a vendor's word, however rather, use the seller's answer together with your total due diligence. This will paint an extra practical picture of the business's present scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Numerous operating businesses finance loans so as to cover points like stock, payroll, accounts payable, etc. Bear in mind that sometimes this can suggest that revenue margins are too tight. Numerous businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that need to be fulfilled or may result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area attract brand-new customers? Often times, businesses have repeat clients, which form the core of their everyday profits. Particular elements such as brand-new competitors growing up around the location, roadway building and construction, and staff turn over can affect repeat customers as well as negatively affect future profits. One essential thing to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business often, the higher the chance to construct a returning client base. A final idea is the basic location demographics. Is the business located in a densely inhabited city, or is it located on the outskirts of town? How might the local mean family earnings effect future earnings potential?