Offering Coming Soon
Washington D.C. – Indoor Cultivation & Retail
Great Downside Protection, Conservative Underwriting, 20.86% AVG. Cash on Cash
506(c) Offering Open to Accredited Investors Only
Target IRR
0
%
Target Equity Multiple
0
X
Average Cash on Cash
0
%
Why We Like This Deal
- High-Growth Market: Tap into Washington, D.C.’s booming cannabis industry.
- Market Advantage: Washington, D.C. has the highest price per pound of cannabis flower in the U.S. and is one of the strongest cannabis markets on the East Coast, with a consumer density of 235 per 1,000 people.
- Scalable Operations: Phase I (15,000 sq. ft.) expanding to Phase II (30,000 sq. ft.).
- Strong Revenue Potential: Projected $90M in gross revenue over seven years.
- Attractive Investor Returns: Projected $25M in total distributions with a 20% preferred return.
- Experienced Management: Partnered with a proven multi-state operator to drive the execution of the business plan.
- Clear Exit Strategy: Acquisition by an MSO or investor buyout via refinancing in Years 5-7.
- Low-Risk Structure: Investors receive 100% capital return before profit sharing begins.
- Revenue Projection: $90 million in gross revenue over seven years, factoring in a 5% year-over-year price compression in wholesale flower pricing, as the market expands.
- Investor Distributions: Beginning 21-months after construction start. Then monthly, thereafter.
- Conservative Underwriting: The deal is underwritten at 0.33 lbs. per plant per harvest—full-term—well below the 0.40 lbs. per plant per harvest performance threshold required for the Cultivation Management Company to maintain the contract.
- Price Compression Consideration: Wholesale cannabis flower pricing starts at $3,000 per pound in Year 1, declining to $2,205 per pound by Year 7, ensuring a realistic and risk-adjusted financial model.
- Expense Growth Consideration: Operating expenses are forecasted to grow at a 3% year-over-year rate to account for inflation and operational scaling.
- Net Cash Flow Efficiency: The Company projects an average Net Cash Flow ratio of 24% of revenue, ensuring strong profitability and sustainability.
- Downside Protection: Comprehensive insurance coverage, including auto insurance for delivery services, builders insurance, product liability insurance, and general liability insurance, to mitigate operational risks.
- Tax & Depreciation Strategy: The Company’s financial model is structured for 280-E tax compliance, leveraging standard deductions along with depreciation from property, plant, and equipment to optimize tax efficiency and enhance investor returns.
A Message From The Founder
Deal Memo
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