Company Name: Denali Accountants
Company Website: http://denaliaccountants.com
Contact Name: Sharon Burns
Contact Email: firstname.lastname@example.org
What is your company's primary cannabis business?: Cultivation
Does your company touch the plant?: Yes
Do you authorize us to provide the following (Pitch Deck) information to our Members?: Yes
Company's Bio (Pitch Deck): NC ULTRA is headquartered in Santa Rosa, California. The Company’s mission is to create a profitable company that is focused on producing high grade cannabis products for the medical and recreational market. NC ULTRA embraces the rich cannabis culture and cultivation history that California is known for. Our success will come because of our passion, our client focus, and our pride and ability in delivering unparalleled customer service.
NC ULTRA is based on the belief that there will be a strong desire and a consistent demand for high quality Cannabis products for the foreseeable future – especially for Cannabis products that have been organically grown in northern California by our Master Craft Growers. NC ULTRA will benefit from experienced business leadership, technical expertise and a well-researched plan. Perhaps most importantly, our leadership team is well connected to the right people in every key aspect of this emerging industry.
NC ULTRA is applying to state of California for licenses to grow and sell marijuana, with a focus on dried flower cannabis and cannabis oils. NC ULTRA intends to use the existing greenhouses on property, 40,000 square foot, at the cultivation facility in Santa Rosa, California, using greenhouse cultivation techniques supporting recreational products, depending on market demand. NC ULTRA will use the balance of the grow site at Santa Rosa, California to continue the current farm products (non-cannabis) and introduce new products to increase the cash flow.
The recreational marijuana market in California is experiencing rapid growth (20 – 30% each quarter) and is anticipated to grow to anywhere from $13 - $30 billion by 2024. Consumption of cannabis oil is also growing in popularity, and the volume of equivalent ounces of oil surpassing the sale of dried flower in the three months ending March 31, 2018.
From a financial standpoint, NC ULTRA is investing upfront capital of $4.56 mm, mostly relating to securing the facility, security infrastructure, and equipment. Also included in these costs are business development expenses, initial inventory costs, and professional license fees, including professional support for its applications. Following receipt of California grow and seller permits and commencement of commercial operations, NC ULTRA is anticipating a profit of 3.3 mm after the first 12 months of operations. In addition to revenue generated by the cannabis products, we expect to continue to create income from the current products grown at the site and increase this revenue by introducing new products that give a higher return per plant. For the first 12 months, we expect to net 2.6 mm and by the end of year 3, 6.0 mm.
C-Suite Bio's (Pitch Deck): Key Management Personnel
Ada grew up in a family of small business owners. Her father owned a construction company and her mother owned and operated a preschool and child development consulting business. Ada’s entrepreneurial passion started the purchase of her first rental house and beginning of a passion for real estate. Ada received her BS in engineering from the California Maritime Academy and spent the next 7 years working in Asia and all over the USA. As an engineer Ada has always focused on the details and assiduously searching for more information. Being hands on involved in a recreation marijuana grow facility build out though Ada a lot about what works and what doesn’t for large scale cultivation. Currently Ada manages the office, procurement, tracking, and export of products for Green and Purples as well as doing the office management, tracking, ordering, and start up research for several other agricultural based businesses in the Oregon. Ada is excited to work with NC ULTRA to bring her unique experience that combines compliance and safety conscious work space development, cannabis cultivation, and efficient and effective management, tracking, protection, and compliance to a start up business.
Joe was born in Maryland and always felt the pull to head west. Once on the west coast Joe found his niche growing medical marijuana in California and later in Oregon. Joe had the opportunity to spend time working on a peony farm in Alaska. The opportunity to work with farmers in such an extreme harsh environment proved much inspira¬tion to Joe when he returned to Oregon and hemp growing. The fact the hemp is cultivation as a row crop and grown on a larger scale is something that Joe has come to greatly appreciate. Several years ago, Joe and Ada started their own business, Green and Purple Farms, with the goal of helping other find ways to make their growing operations more sustainable and regenerative. The business has since expanded to include the hemp extraction and export of hemp extracts and end user products. Joe was drawn to NC ULTRA because of its supportive and inclusive nature while simultane¬ously allowing him to focus on and share his pas¬sion for large scale growing.
Sharon Burns has a BSC degree in Math/ Physics and is a Strategic and analytical thinker with over 30 years of experience in corporate high-level accounting management role. Proven track record of innovation, prob¬lem solving, and delivering results. Strong leadership skills and high integrity. Highly detail-oriented and results driven. Indepen¬dent consultant providing CFO, Controller, and start-ups. Trusted advisor guiding start-up founders and their teams to implement financial, operational, and strategic best practices. Owner Denali Accountants loca¬tions Salem OR, Sacramento CA, Winchester CA Las Vegas NV and Arizona.
Peter has a BSC degree in Math/Physics and is a business minded financial consultant/employee who has worked in every business sector including government positions. He has managed major mission critical projects for all sorts of clients and easily deals with all levels of management to ensure issues resolutions for the different business needs. Very results-oriented bur meticulous in ensuring that project targets are meant. Employed at U C Davis Medical center for 15 years.
Growth Plan (Pitch Deck): 2 Revenue streams Are a key to our growth
NC ULTRA will offer a variety of strains that will be identifiable by the percentage of THC and CBD they contain. In addition to dried flower, the Company will dedicate 20% of its available capacity to the production and sale of oils. NC ULTRA will also explore the sale of concentrates such as gel caps, edibles, supplements and beverages, pending legislative changes. The Company will undertake a full cultivation plan as it commences to use the facility at the grow site to more closely identify its product offerings such as Ginseng, Cilantro, Lavender, Ginger, Mushrooms, Goji berries and garlic.
Investment Opportunities (Pitch Deck) : Key Financial Assumptions and Outputs
Below is summary of the key assumptions and outputs from the financial model that accompanies this business plan:
• Start-up costs of $4.56 million, the majority of which relates to buying the farm 2.9 million and facility, security infrastructure, and equipment cost (1.6 million).
• Annual expected revenue is expected to be $2.5.0 million a year for the existing farm and 1 million a quarter for the marijuana grow.
• A ramp-up of sales to full capacity from 6 to 9 months. (getting permits being the major delay)
• Monthly overhead costs of $50,000, including salaries of $24,000 (4 salaried positions and 8 hourly positions) and 12,000 for materials for growing.
• Based on the assumptions above, the break-even period is approximately 4 months from the time commercial operations commence.
• The project net present value is $60. million over 10 years