Raising Cannabis Capital 0125: John Sullivan - Cannabis Inventor

In less than four months, the growth of the hemp industry has forced cannabis inventor John Sullivan to completely redesign his cannabis processing line.  At the start of 2019 his 2,000 pound per hour automated system was state-of-the-art.   Today, companies are looking for systems which will process 100,000 pounds per hour.  John joins Dan Humiston to talk about raising capital to fill $27 million dollars of orders already in their pipeline.  

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Dan Humiston:
Today's show is sponsored by a former guest, the fintech group, and their solution for Cannabis online companies and dispensaries to accept cashless payments. If you want a Cannabis dispensary or a Cannabis online business, you know that banking laws make it impossible for you to accept any form of payment other than cash. The fintech group finally provides an option that was previously not available. To learn more, go to fintech merchant accounts, dot com forward slash marijuana hyphen dispensaries or listen to Raising Cannabis Capital Episode 55.

John Sullivan:
So what we're looking to do is raise anywhere between 50 to 100 million dollars supply this equipment. We have a perpetual licensing, William, to run this product and they'll have the fastest and cheapest oil out there. Because the people that are doing it by hand or batch and can't compete with the speeds in the process if we run fully automated with a minimum amount of overhead.

Dan Humiston:
From MJBulls media, it's the Raising Cannabis Capital show. I'm Dan Humiston, and on today's show how in less than three months, this former guest has had to completely redesign his Cannabis processing invention just to handle the demand.

Dan Humiston:
Today, a Raising Cannabis Capital, we are joined by a former guest, Jon Sullivan. Welcome back to the show. Thanks for having me on. Well, one thing about the Cannabis industry that most people have a hard time getting their head around is there's no existing infrastructure. You know, we've all heard the saying that necessity is the mother of all inventions. Well, Cannabis is the mother lode of all necessities. I mean, just about everything in this industry has to be recreated or invented, creating enormous opportunity for entrepreneurs. Let me let me say a different way. We know we can't use banks or credit cards. So the necessity to invent a different way to process payments had to be created. And we can't advertise. So there was a necessity to invent advertising platforms. So we thought with all these inventions, it'd be a good idea to occasionally feature different Cannabis inventors. So with this idea, I went back to John Sullivan because he was on our show a few months ago talking about his first Cannabis invention, which was a robotic machine that linked all the equipment necessary to automate a Cannabis processing facility, and it could process over 2000 pounds of Cannabis per hour. And like John was like maybe three or four months ago, we had this we did this interview. We were so excited. You know, before we jump ahead, this wasn't John's first clambake. He had a couple of homerun inventions before he got into Cannabis. He was the inventor of the most popular cotton candy in the world, fluffy, soft. And then he went on and invented electronic controls for NASCAR drivers Jeff Gordon and Jimmie Johnson, which are eventually used by all NASCAR drivers. So he's got some serious inventor chops. And I'm sure he saw what was going on in Cannabis and said, I got to get in there because these guys need me. So today he's here to talk about what's going on with his invention. I really like you explain to everybody where we are today less than three months later.

John Sullivan:
So the you know, the phone calls that we're getting now are people that want to process 60000 pounds an hour at the bar right now and do 60000 pounds an hour required a completely different approach, completely different technology, because it's just so much biomass that you have to drive, chill and extract. And we go all the way to Iceland. It's crude distillation, Iceland that do that completely automated required a completely different set of plans. And so where we're at right now is that we've got a complete automated processing line that can do anywhere from two hundred and fifty pounds to 100000 pounds an hour.

Dan Humiston:
Can I jump in for one second? Yes. So when you say fully automated, they drive the truck right up the back or they lap the forklift and it just puts the raw material right in. And that's the last time anybody touches it, it's all.

John Sullivan:
That's correct. We try it. We hammer mill it into the correct particle size. We need it gets put in a super sack, words it stays in the drawing room while it's waiting to be processed. And then from there it goes into a the process system. And once that happened, it goes into a cold storage where it gets brought down to minus 70, the alcohols at minus 70, minus only Celsius Celsius. They get the mix. And the mix really is where the oil is getting separated. That's completely computer controlled. It's feeding this cryogenic system that we developed that separates the biomass from the oil and then that gets evaporated. The oil comes out. So that's your crude or you can send it to distillation where you can send it isolates. That entire process is fully automated. No one touches it once it gets past the mixing tanks. Oh, my gosh.

Dan Humiston:
Ok, so now that the million dollar question where I mean, it's a billion dollar question, what happened that we needed to go from 2000 pounds to honor 2000 pounds?

John Sullivan:
Well, what happened is that billionaires jumped in. So they they saw this opportunity to say, well, we don't want to grow 10 acres. We want to grow 4000 acres. We want to grow a hundred thousand acres. And so they started finding clients overseas that aren't in this market yet so they could sell this product to. And the problem was, as they all started growing, thinking that technology was was there, then they found out it wasn't. Then they came. Nestle said, look, we need 60 thousand pounds an hour. And right now, it appears that we're the only ones that have that solution. We were also getting phone calls from smaller people that said, you know, I need to do this mountain thousands an hour and I only have two million dollars.

Dan Humiston:
This is an issue because everybody's cash flow is tight because they're, you know, in the full on growth mode. So they don't have the upfront cash to pay 10 million or 15 million for this equipment. And so you are going to use a a model similar that the only one I can compare it to would be almost the software industry where I'll let you explain how it works. But it's what beautiful about it is. It's reoccurring.

John Sullivan:
Well. Well, the game plan is there's a lot of these farmers have, you know, anywhere from a hundred to a thousand acres of product in the ground. So that's that's equity. But they don't have the funds to really process that material. So if they join our subscription plan, what we do is that we take money upfront and then we get a percentage of the crops that they grow. We'll set up the facility in their area in which we can get a co-op of other farmers in and we help maintain that facility. As there's upgrades, we give them the upgrades. And so really, there's a partnership now of all these facilities that we would have spread around the United States in which everybody wins. Yeah. So what we're looking to do is raise anywhere between 50 to 100 million dollars, supply this equipment. We have a perpetual licensing, Willem, to run this product and they'll have the fastest and the cheapest oil out there because the people that are doing it by hand or batch and can't compete with the speeds in the process that we run fully automated with a minimum amount of overhead.

Dan Humiston:
I want to take a quick break to think all of our Raising Cannabis Capital listeners and to remind you that you can support the show by subscribing to MJ Bell's premium. It's only four dollars and ninety nine cents per month and you gain access to all previous Raising Cannabis Capital episodes as well as all other MJ bills produced podcast and exclusive content, including companies investor pitch decks. Go to MJBulls.com and enter promo code raising to get your first month free.

Dan Humiston:
The barriers to entry that somebody would have to go over to get to what you're talking about right now seem insurmountable.

John Sullivan:
So for investors, it's recurring revenue. And when we decided to sell the entity, we all know that reoccurring revenue is where the highest values are. Yeah. And so with that, we'd also have a continuing R and D center that's constantly making these improvements and speeding this process up in which everyone in the network benefits from.

Dan Humiston:
And you have orders right now are pending orders right now. And you already have the equipment ready to go. So you're a no go zone.

John Sullivan:
Yeah. So we have a you've got 27 million in the pipeline right now.

Dan Humiston:
Oh, my cash. All right. So this has to move quickly, if you're interested. John Sullivan would be the point of contact. We have all of his information on our Web site type of investor you're looking for.

John Sullivan:
Yeah, we're looking for someone who's probably in the Hemp Cannabis space that knows the market and understands this space. And it'll be an equity share.

Dan Humiston:
Yeah. Because they're probably going to have to bring a syndicate in for this. Again, John Sullivan and I have all of his information on the MJBulls Web site. And John, I can't wait to talk to you in three months. It'll be you'll be you'll be a half a million pound an hour.

John Sullivan:
You know, you just never know, right? Never say never. That's for sure. It's an exciting field because it's growing so fast. It's just exciting to watch. That's the other thing that we bring to the table is that people that are just getting into the space and growing for the first time can network with other members in our group to make sure they're doing it right. Yeah.

Dan Humiston:
It's about this whole industry. It's one big community. It's really, really exciting. Well, John, thanks for being on the show. Promise me I'll be back in a few months because I want to do this again. All right.

John Sullivan:
Always a pleasure. Yeah, good luck.

Dan Humiston:
Thanks for listening to Raising Cannabis Capital to learn more about today's guest worker, become a guest. Visit our Web site at MJBulls.com. Today's show is produced by MJBulls Media with original music produced in part by Jamie Humiston. I'm Dan Humiston and you've been listening to the Raising Cannabis Capital podcast.

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