Medical Cannabis Cultivation Operation in Mississippi For Sale

CannaMLS ID: 13409
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Price: $0


Listing Details


Listing Category
Cultivation
Distribution

License Status
State / annual license granted

Medical
YES

Adult Use
YES

Price: $0

Listing Status: For Sale

Duran Advisors presents this Medical Cultivation Operation For Sale in Mississippi. The company is renowned for its premium products, which makes it a preferred supplier for many dispensaries. It holds a significant market share in a rapidly growing medical market, with products distributed to a large number of dispensaries across the state. The cultivation facility is equipped with advanced technology and efficient operational processes, ensuring high-quality output and scalability. With increasing patient counts and potential legislative changes, the market is projected to grow significantly, providing substantial upside for the new owner.

The current owners seek to sell due to capital constraints, but the existing owners are committed to ensuring a smooth transition. Key management is willing to continue growing the business with a new owner. The non-essential owners are also willing to provide support during the handover period to maintain operational continuity and client relationships. The business is managed by a team of seasoned professionals with extensive experience in cultivation, sales, and operations. 

While the business boasts consistent revenue from a diversified customer base of dispensaries throughout Mississippi, it requires additional working capital to fully realize its growth potential to expand production and marketing efforts. There is significant potential for expansion into the edible market and future recreational sales, providing a substantial growth trajectory for the new owner. 

This opportunity is ideal for an investor or company looking to enter or expand in the burgeoning industry. The buyer should have the necessary capital to invest in growth initiatives and the capability to scale the business to its full potential. Between working capital and expansion plans within the first year, a buyer should have at least one million liquid beyond the sale price.

The business resides in a ~10,000+ square foot facility on 2.5 acres of land with ample room to expand. The property, recently valued at $1,000,000, is being sold with the business.

A Matterport 3-D Virtual Reality scan of the entire premises is available for fully disclosed buyers, as is a 50+ page Confidential Information Memo (CIM).

Once properly capitalized, current monthly sales should immediately increase to $100,000 per month because of unmet demand from dispensaries. Future revenue for the facility will reach capacity between $5-7 million per year, depending on product mix and efficiency.

This is a structured sale with the following schedule:
7/19 Question Submission Deadline
7/26 LOI Submission Deadline
8/30 Due Diligence End & Close (time may be extended for financing)

Meet the owners, visit the site, and see this turnkey opportunity!

For serious inquiries, please call the listing broker, Joel F. Duran, CM&AA®, CM&AP®, CEPA®, CMSBB®, at (504) 313-1038. The Real Estate broker for this listing is John Sanderford, and he can be reached at (504) 321-0196.

Listed By: Joel Duran, CM&AA, CM&AP, CEPA, CAIM, CMSBB
Background information
Reference: NOLA-0090
Year established: 2022
Reason selling: Growth Capital

Finance
Sales: $876,089
Profits: $201,594
Profit type: Discretionary Earnings

Operations
Employees: The business has management in place and is primed for a new owner to take over.
Inventory: ~$600,000
Furniture fixtures and equipment: ~$800,000

Premises
Facility: This facility, one of the first to receive a cultivation license in the state, is designed to optimize both growth and operational efficiency, making it a standout in the newly legalized market. The cultivation facility spans approximately 2.44 acres, meticulously described and surveyed to ensure precise boundaries and compliance. The property includes a modern, metal building that houses the cultivation operations, complete with advanced environmental controls that manage critical growth factors such as temperature, humidity, and CO2 levels. This setup ensures the production of premium quality product under consistently ideal conditions. Key facility features include a sophisticated Growlink Fertigation System, which integrates fertilization and irrigation, delivering nutrients directly to the plants' root zones. This system is complemented by a top-tier Environmental Control System that maintains optimal growing conditions, crucial for maximizing plant health and cannabinoid production. The property is equipped with high-capacity dehumidifiers (Quest 225 and Anden 710 models) to stabilize the environment further and a state-of-the-art reverse osmosis water filtration system that ensures the purity of water used in nutrient solutions. Additionally, the facility boasts a Mobius M108S Trimmer for precise trimming of flowers, ensuring high-quality product preparation. Security and compliance are paramount, with an integrated UniFi by Ubiquiti system providing comprehensive camera monitoring and door access control, ensuring a secure and regulated operation. This facility represents a turnkey solution for those looking to enter or expand in the industry, with cutting-edge technology and infrastructure already in place. The current owners have laid a strong foundation for success, making this an ideal investment for a forward-thinking entrepreneur or company looking to capitalize on Mississippi’s growing medical market.
Square footage: ~ 10,000 sq. ft.
Rent and lease terms: The property is included in the sale and the owners do not wish to lease to a buyer.
Location: Mississippi

Opportunities
Growth: Product Line Expansion: Poised to extend its offerings to include edibles, the company is strategically positioned to capture a broader customer base. Anticipated changes in legislation could further expand the market to recreational, significantly enhancing revenue potential. Increased Production Capacity: Investment opportunities exist to scale up production facilities to meet growing demand. The company is equipped with advanced cultivation technologies, and expanding these facilities could drive higher output and efficiency. Acquisition of Processing License: Securing a processing license would enable the company to manage more of its production process in-house, increasing control over operations and profit margins. This strategic move is expected to streamline operations and enhance product offerings. Marketing and Brand Development: There is substantial potential to expand the company’s market presence through enhanced marketing strategies and digital outreach. Increasing brand visibility and consumer engagement is key to driving sales and solidifying market position. Infrastructure Improvements: Plans include the construction of a new processing facility to support increased production volume and improve operational efficiency. This development will facilitate higher product quality and more efficient supply chain management. Expansion of Sales and Distribution Networks: Expanding the sales team and distribution network will enable the company to access new markets and improve penetration in existing markets, maximizing coverage and revenue growth.


Market: The Medical and Recreational Stores industry, which includes stores that retail medical (by prescription only) and recreational, has expanded dramatically over the past five years. The legalization of products for medical and/or recreational purposes and the growing acceptance of legal products use provided operators and investors with unprecedented opportunities. There has been no shortage of demand over recent years, and the industry has become one of the fastest-growing in the United States. The legalization of recreational sales in several states has fueled revenue growth. Furthermore, the licensing of commercial recreational retailers has caused new entrants to flood the legalized market. At the time of writing, 21 states (Alaska, Arizona, California, Colorado, Connecticut, Illinois, Maine, Maryland, Massachusetts, Michigan, Missouri, Montana, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Virginia and Washington) and the District of Columbia have legalized the use and sale of recreational marijuana, Meanwhile, medical marijuana dispensaries have continued to benefit from the steadily aging population and growing acceptance of the medical applications of marijuana. Also, the continued development of edible cannabis products has helped attract consumers that were unfamiliar with marijuana products or averse to smoking. Edible products and vaporizer pens will continue to be a growth segment for the industry in the coming years, as they are convenient alternatives to traditional cannabis consumption. Overall, industry revenue has been growing at an average annualized 28.7% over the past five years, and is expected to total $36.1 billion in 2023, when revenue will jump an estimated 11.8%. Over the next five years, industry revenue is expected to increase at a CAGR of 14.6% to reach an estimated $71.5 billion. Nonetheless, the industry will likely remain at risk until the federal government definitively changes its position on the legality of marijuana. Until then, an uptick in the number of medical marijuana patients and a growing recreational cannabis legalization movement will reap long-term benefits for the industry. Rising demand is also forecast to widen profit margins, as is the success of for-profit recreational marijuana businesses in states with large consumer markets like California, Colorado and Washington. Source: IBISWorld Executive

Terms
Financing: Owners are flexible on terms for the right buyer.
Training: The current ownership is committed to providing comprehensive support and training to the new owner(s). This includes a detailed handover period where the current management will share their in-depth knowledge and insights into the operations, market dynamics, and regulatory environment specific to the cannabis industry in Mississippi. Details of the Support & Training Offered: Transition Support: The seller team is prepared to provide the new owner with 3-6 months of orderly turnover support at industry-standard pay rates. This period is designed to facilitate a smooth transition of knowledge and operational control, ensuring that the new owner is fully equipped to take over the business operations effectively. Extended Consulting Availability: Additional training or consulting services are available beyond the initial transition period if required by the new owner. This extended support can be tailored to the specific needs of the new owner, providing flexibility and continued assistance as they acclimate to their new role. Operational Training: Comprehensive training will cover all aspects of the business operations, including cultivation techniques, product development, compliance with state regulations, and financial management. The current management's expertise in these areas will be fully transferred to ensure the new owner is well-prepared to maintain and grow the business. Staff Retention: The existing team, known for their dedication and industry knowledge, is expected to stay with the business, providing continuity and stability. The new owner will benefit from the retained experience of the team, which supports a smooth transition and ongoing operational success.


Listing Details

Listing Status
For Sale

Location
Mississippi 39666

Date Listed For Sale:
7/5/2024

Date Last Updated:
7/6/2024

Generating Revenue:
YES

Operational:
YES

Property Details

Buiding Size (sq ft)
10000 sq ft

Lot Size (acres)
0 acres

Built out / Turnkey
YES

Equipment Included
YES

Room for Expansion
YES

Pricing Details

Listing Price
$0

Seller Financing Available?
YES

Property Purchase Price
$1,000,000

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