ESTABLISHED COMMERCIAL-GRADE CANNABIS CULTIVATION This is an opportunity to acquire an established cultivation facility. The business has proven it can generate strong cash flow in one of the toughest cannabis markets in the country. The company operates from a modern commercial-grade cultivation facility with an experienced management team already in place.
Building a new cultivation facility in California would require significant capital, years of development, regulatory approvals and successful licensing. This opportunity allows a buyer to acquire an established operation with immediate cash flow and an experienced team already in place. STATE-OF-THE-ART FACILITY The facility was developed with an estimated $10 million - $15 million invested in construction and build costs.
The infrastructure was designed for commercial production. Management believes building a comparable facility today would require substantially more capital and years of development. - Modern: Commercial-grade cultivation infrastructure - Build-Costs: Estimated $10 million - $15 million invested in build costs - Fully Licensed: Fully licensed cultivation facility - Replacement Costs: Estimated $15 million - $20 million to replicate today, with inflation STRONG CASH FLOW GENERATION California has been one of the hardest cannabis markets in the country.
Prices have fallen sharply over the last several years. Many operators have downsized or exited the industry. This business continued to produce consistent EBITDA through disciplined cultivation and efficient operations.
The results speak for themselves. - EBITDA: Approximately ~$2 million average over three years - Resilient: Profitable despite 50%+ market price declines - Efficient: Strong operational discipline - Proven: Years of successful production EXPERIENCED OPERATIONAL TEAM A strong management team oversees the day-to-day operation. The owner is not responsible for daily activities.
Key employees are expected to remain after closing which provides continuity for the new owner. - Management: Experienced leadership team in-place - Independent: Limited owner involvement - Retention: Key employees expected to remain - Transition & Support: Seller will assist with the transition REGULATORY OUTLOOK Federal cannabis reform continues to move forward. The proposed rescheduling of cannabis from Schedule I to Schedule III represents one of the most significant regulatory changes the industry has seen.
While the process remains underway these changes could reduce federal tax burdens, improve access to banking and capital, encourage additional institutional investment and continue the maturation of the relatively new cannabis industry....