Manufacturing and Distribution License (Sacramento CA)

Pricing Details

Full Buy Out Price:
$1,550,000
Buy In Price:
$0
Ownership Percentage:
100 %

Property Details

Property Attached:
Yes
Property Is Movable:
No
Property Is Included:
No
Has Buy-in Option:
No
Is Built Out:
No
Has Room For Expansion:
Yes
Operations Are Needed:
No

Manufacturing and Distribution facility in Sacramento, centrally located near an International Airport, the Bay area, and I-5.

Type 6, Type N manufacturing license along with Provisional Distribution license priced to sell. Two licenses and companies for the price of one with options for a ten-year lease. Less than 75 Type 6 Licenses were awarded in California in 2018.

The Distribution License is Provisional. Which means the sellers have submitted the annual license application and are awaiting their annual license for 2019. The temporary Manufacturing License is a type 6 or type N license, and annual license application will be submitted in February.

Type N

This license type allows you to create a brand factory of cannabis edibles, beverages, and every other infused products. White labeling and co-packing are no longer allowed unless you are an equity owner in a license type. 75% of cannabis brands have gone extinct and out of business due to regulation. These type N infusion licenses are very rare with less than 75 being handed out in 2019 in California. Those numbers can also be verified on the BCC and CDPH websites. Below is the legal definition of Type N and what they can manufacture.

“Type-N, for manufacturers that produce edible products or topical products using infusion processes, or other types of cannabis products other than extracts or concentrates, but that do not conduct extractions. A Type-N licensee may also package and label cannabis products on the licensed premises.

“Infusion” means a process by which cannabis, cannabinoids, or cannabis concentrates are directly incorporated into a product formulation to produce a cannabis product.

Edible & Topical Manufacturers

Producers who create edibles, topicals, or other cannabis products that rely on infusing cannabis concentrates should consider the Type-N license. Infusion license holders will comply with the same state-level requirements that Type-6 manufacturers must adhere too, which is less stringent than Type-7 regulations. In many cities and counties where Type-7 activities remain banned, Type-6 & Type-N activities may be the only available options.

The Type-N license type is an important feature of the broader cannabis manufacturing category. Under the previous medical collective model, manufacturers had more freedom to obtain source material and conduct their own extraction and infusion activities. The collective model had less oversight, fewer regulations, but arguably, more risks. With legalization, costs and barriers to entry are increasing throughout the state, requiring some cannabis businesses to specialize and limit their operational scope.

A Type-N license holder would need to purchase cannabis concentrate through a Type-11 licensed distributor or directly from a Type-6 or Type-7 license holder and transported via a Type-13 “Distributor Transport Only” entity. Once the concentrate is obtained, the Type-N license holder may conduct infusion techniques to produce cannabis products other than extracts or concentrates, and package/label those products on the same premises. The final products can then be sold to distributors who supply cannabis retailers. The challenge is to produce at such a scale where the final retail price, after passing through multiple licensed entities, subject to state and local taxes, remains at a competitive price point.”

The sellers are currently working with an amazing architect and engineer to get the manufacturing floor plans, building plans and everything prepared to move towards construction of the manufacturing and distribution space.

Beyond the licenses, the sellers have extremely detailed company paperwork, SOP’s, revenue projections, construction and operational costs, flow process diagrams, building plans, and everything a new operator would need to roll out and be generating revenue in 2-4 months. We can share this information once a buyer is vetted properly. Distribution could begin generating revenue today.

The sellers also have incredible IP that they might be willing to include in the sale for the right price. Including recipes, letters of intent, an incredible list of contacts in the industry for sourcing and retail.

The sellers are also willing to stay on as operators or help to oversee construction or roll out in any way. They have great relationships with the city of Sacramento and would be happy to continue to represent the project under the right terms and for the right price.

Asking Price: $1,550,000.00

Must sign an NDA/Waiver and have proof of financials before any other detailed information is released.

 

Price: $1,550,000

Listing Status: For Sale

Details

Date Listed For Sale: 2/4/2019
License Type: Manufacturing and Distribution

Sacramento, California

Recreational: Yes
Medicinal: Yes

Listing Type

  • Manufacturer/processor/extraction
  • Distribution

Terms And Options

4000 SQFT 

$3/SQFT

5years plus options