Michael Dillon
Lebanon, ME (USA)
Role(s):
Other
Southern Maine CannaCare
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Startup
Location:
Lebanon
Industry:
Healthcare
Year Founded:
2000
Number Employees:
1-10 people
Business Stage:
Growth (profitable)
Entity Type:
Limited Liability Company
Description:
We are seeking $1.1M to acquire an established legal, organic, medical cannabis farm in southern Maine. $999,000 will be used for acquisition. $101,000 will be allocated to operating costs. We are in the early due diligence phase of acquisition and plan to meet with legal counsel knowledgeable in the cannabis industry with the requisite experience to assist in the negotiation of this deal. We also plan to retain the firm for ongoing counsel with regard to this developing industry.
The business is currently grossing $800,000 annually derived mainly from flower/bud sales alone. The business is limited in it's overall performance by the owner's lack of physical mobility due to military service injury and 100% disability status. We feel that we can increase the overall gross income of the business to close to $1M the first year by simply introducing multiple "value-added" products that are not currently being marketed to it's patients. This can be accomplished without significant financial investment and would fill a large void in the business offerings as there are currently only a few products, purchased wholesale from outside vendors, being offered. We will be able to produce many of the additional products in-house using much of the "waste" produced during the bud harvesting phase.
The farm is located on 5+ acres and includes a Post & Beam 3 bed 1.5 bath Cape with 1 Bedroom apartment over an attached 2 car garage. The property is on river frontage, with an in-ground pool and screen house overlooking the river, Brick fireplaces, hickory flooring, and kitchen with wolf appliances capable of being certified for commercial operation. The apartment is currently rented for $750 per month.
There is a two story, 4000 +/- sq ft barn and 24 ft by 80 ft greenhouse with fully automated light degradation, ventilation and watering systems on automated timers. The barn houses the indoor grow space which produces 3.5 pounds of bud on a perpetual weekly rotation for a total of 182 pounds annually. The current owner is in the process of modifying the greenhouse to essentially double the production output of the space. The outdoor and greenhouse grows can currently yield over 100 lbs annually. There is a full motion sensitive security system on premises.
In addition to the value added products, there is also space to construct at least two additional 24'x80' greenhouses. If constructed to function year round, the output from them would more than quadruple the overall bud production capacity which, in turn, would provide the raw materials to increase the value-added product line by the same amount. The outdoor grow space can also be increased in it's capacity which would have similar effect on value-added products as well.
This is a currently a lucrative business for a husband and wife caregiving team and a very updated grow facility with over $500,000 invested in equipment and greenhouse. As the overall acquisition includes the residential property, which is valued in the $300,000 range, we feel that the business is significantly undervalued at roughly $700,000. If taken to it's full potential with edibles and other associated value-addeds, in it's current configuration, the business could easily be grossing $1M+ annually. If taken to it's fullest potential, this could easily be a $2M+ operation.
We thank you for your interest and appreciate any consideration you may be able to give us. Please do not hesitate to contact us with any questions you may have.