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Spring MJ Biz Opportunities Roundup
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Hello Entrepreneurs and Investors!

Welcome to our Spring Opportunities Roundup. We have three great businesses to present to you in this letter. 

The first company featured below is on a growth curve like no other we've seen. At its current valuation it is a simply an unbeatable deal. This company is up 43% year-over-year already and August is their peak month!

A full-price cash buyer could recuperate 44% of their purchase price in the first year. (Based on 2016 EBITDA projections.) 
All of this company's stores are in towns protected by ordinance or moratorium, so there will be no near-term competition to threaten growth. If you are in the market for a profitable MJ business that is as close to a sure thing as you can find, this is the one.

The second business is a tightly run cash cow that is positioned to explode when its locality permits recreational sales (as these companies always do)--an eventuality we think is inevitable. This company almost runs itself and is a chance to get into this industry with very little risk and a huge upside potential.

The third company below was promoted in our last mailing. This company is also in a walled-garden situation whereby its location is sealed off from competition by moratoria. It is scheduled to begin Rec MIPs production later this summer, pulling costs way down on one of their biggest selling product categories. To top it all off, this opportunity includes real estate--the cultivation is for sale and the retail location has an option--permitting lease-back arrangements with out-of-state investors.

For more information on any of these companies, simply reply to this email or give us call at one of the numbers listed below.

Sincerely,

Read Spear & John O'Connor

 

1 - Booming Business in Two Protected Towns

THREE CULTIVATIONS & FOUR STORES
One Medical MMC and One Recreational MMC in Each Town

Background

This medical and recreational cannabis cultivation and dispensary operation has been in business since the Obama Justice Department’s Ogden Memo gave the green light to medical marijuana in 2008.

The company has three cultivation centers, two medical dispensaries, and two recreational dispensaries in two of the most popular tourist areas in all of Colorado (total of 7 licenses: two medical OPC, one recreational OPC, two medical MC and two recreational MC). One location has a moratorium in place, the other a statutory cap on more Marijuana Centers - as of now, the only way into these towns is to buy. New expansions are under way.

Facilities have leases that can be assumed. Owners work part time and assume general management roles. 

Financial Summary
  2014 2015 2016 (E)
Revenues $2.5M (T) $6.3M (E) $7.8M (P)
Net Income $275K (T) $1.7M (E) $3.1M (P)
(E) Mgmt estimate (T) Tax return (P) Mgmt projection  


The company has a BSA-compliant bank accepting deposits. No debt and minimal capital expenditure needs exist. Since about half the sales are medical, sales tax is low (already expensed in net income above).

Buyer Requirements
Cash buyer, resident of the State of Colorado. Buyer must execute a confidentiality agreement prior to receiving any additional information.
 

 

2 - Cash Cow Poised for Explosive Growth

ONE CULTIVATION (OPC) & ONE STORE (MMC) - MEDICAL
Great Revenue, Highly Profitable

Background
This medical cannabis cultivation and dispensary operation has been in business since 2010. This is a lean operation perfectly poised for growth. It is located near a major Colorado metropolitan area.

The company is nearly hands-off for the owner, with only 4 full-time and 1 part-time employees. This turnkey operation is in the process of adding a MIPs, which will permit the new owner to bring concentrates and extracts production in-house. As concentrates and extracts comprise 30-40% of sales, this means an easy boost to profit. The municipality in which the operation is located is cooperative, permitting easy expansion.

The operation is all in one facility and has a lease that can be assumed. Landowner is amenable to a sale. Business has right of first refusal for facility. Owner works only a few hours per week.

Financial Summary
 
  2014 2015
Revenues $527K (T) $540K (E)
Cash Flow $219K (T) $230K (E)
(T) Tax return (E) Estimate  


No debt or capital expenditure needs exist. Since the sales are medical, sales tax is low (already expensed in net income above).

Buyer Requirements
Cash buyer, resident of the State of Colorado. Buyer must execute a confidentiality agreement and provide evidence of available funds prior to receiving any additional information.
 


3 - Protected Mountain Town Just Added Cultivation and Rec MIPs

MED/REC CENTER, MIP AND OPC - 8 LICENSES TOTAL
REAL ESTATE INCLUDED: 10,000+ SF BUILDING

Background
This medical and recreational cannabis cultivation and dispensary operation is the most established company in its area and is growing at 25% year-over-year!

This company has little competition and a moratorium in place to protect it from having any in the near future; the only way into this town is to buy. This town is a popular destination for tourists and the sales show it! The company has a Med MIP and wil soon have a Rec MIP. Additional cost savings will follow this valuable addition to the company.

The cultivation building is for sale and the store building has assignable right to buy! Owners assume general management roles and have trained employees to work autonomously. 

Financial Summary
 
  2014 2015 2016
Revenues $2.2M (T) $3.6M (E) $4.3M (E)
EBITDA $536K $786K (E) $947K (E)
(T) Tax return (E) Estimate    


No debt or capital expenditure needs exist.

Buyer Requirements
Cash buyer, resident of the State of Colorado. Buyer must execute a confidentiality agreement and provide evidence of available funds prior to receiving any additional information.
READ SPEAR
720-530-3828

JOHN O’CONNOR
724-553-1492
Copyright © 2015 Read Spear & John O'Connor, All rights reserved.

Our mailing address is:
PO Box 18546
Denver, CO 80218

Read Spear is a licensed Colorado Real Estate Broker with Gillette Properties
103 East Simpson Street
Lafayette, Colorado 80026
720-408-5370

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