Cannabis Delivery Business in NorCal | Exceptional Revenue Growth | 46 Cities and Towns

CannaMLS ID: 4196
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Pricing Details

Full Buy Out Price:
$0
Buy In Price:
$0
Ownership Percentage:

Property Details

Property Is Leased:
Yes
License Is Movable:
No
Real Estate Is Included:
No
Has Buy-in Option:
No
Facility Is Built Out:
Yes
Operations Are Needed:
No

Founded in April of 2020, Weedco Delivery is one of Northern California’s fastest growing cannabis delivery companies. It is a family-owned business based in Sacramento with a license to deliver to anyone in California, and currently services 46 cities and towns. The company has grown exponentially since opening its doors for business only five months ago, doing over $66,000 in sales in the month of August. Weedco currently has 1,300+ customers, 68% of which are repeat customers, with an average order of $117. The goal is to do $500,000 in months sales by February 2022.

Please contact chad.dixon@streamrealty.com for more details.

Business Operations

  • License: Retailer Non-Storefront (Type 9)
  • Location: Headquartered in Sacramento, servicing 46 cities and towns in NorCal
  • Operations: Located in a property with several other cannabis-tenants. Extensive video monitoring, armed security, and a perimeter fence
  • Size of Office: 1,233 SF
  • Lease or Own: Lease
  • # of Employees: 13 (includes three managers)
  • Inventory: included in asking
  • FF&E: Included in asking
  • Training: Offered if terms are agreeable
  • Suppliers: 12+
  • Motivation for Selling: Owner pursuing commercial real estate ventures
  • Seller Financing: To be Considered
  • Stock Offering: To be Considered

 

Investment Highlights

  • Unprecedented opportunity to buy a young and “essential” business with exceptional sales growth. Weedco Delivery is both a pandemic-resistant and recession-proof business.
  • Strong Logistics - Weedco is a fast and efficient cannabis delivery company, offering quality products that are affordable. The marketing is strategically designed to be the “first choice” option of consumers.
  • Loyal Clientele - Repeat customers are rewarded with discounts. Currently 68% of customers have made more than one purchase.
  • Exponential Growth Opportunity – A buyer has the ability to increase sales by expanding the covered territory and greater penetration within existing markets. Weedco’s current market covers nearly fifty cities in NorCal, and currently achieves over $66,000 in monthly revenue.  Recently, the company acquired three new Weedmap pins for Davis (#4), Truckee (#1) and Lake Tahoe (#1) with expectations for sales to grow proportionately.
  • “Seed to Sale” - Future growth plans include vertical integration with other components of the cannabis industry such as cultivators, manufacturers, distributors, dispensaries, and other delivery companies. This growth strategy allows for cost cutting synergies and revenue growth opportunities.
  • Type 9 License - Weedco has a delivery only license to operate out of Sacramento County and sell to anyone in California.  A non-storefront retailer licensee sells cannabis goods to customers exclusively through delivery. The business also has a licensed premise to store the cannabis goods for delivery.  This license took about two years to obtain at an expense of $50,000.
  • Cannabis Sales Growth – As the number of cannabis users increase, so does the customer base of Weedco.  Worldwide cannabis sales in 2017 stood at $9.5 billion; that increased to $12.2 billion in 2018, per data from BDS Analytics. Grand View Research data shows the global legal cannabis market could be worth $73.6 billion by 2027, a growth of 503% in nine years.
  • 22% of Adults Consume Cannabis - It’s estimated that more than 55 million American adults use cannabis in any given month. Most of these users are recreational, as there are only about 2 million medical marijuana patients in the U.S.
  • Substantial Gross Margins - Weedco has competitive pricing from a variety of suppliers.  The typical product markup is 150%.
  • Diverse Income Stream - There is a wide variety of cannabis-based products that Weedco sells which includes:
    • Cannabis Flowers – 45% of sales
    • Vape Pens and Concentrate – 30% of sales
    • Edibles – 25% of Sales
    • Merch, supplies, and other – 5% of Sales

 

Lease Terms

  • Rent: $4,335/month (decreases to $3,000 in Jan 2021)
  • Lease End: December 2023
  • Option to Extend: (2) five-year options starting at $3,090/month

Price: $1

Listing Status: For Sale

Details

Date Listed For Sale: 9/22/2020
License Type: Type 9 License (Non-Storefront Delivery)

Location: Sacramento, California 95828

Recreational: Yes
Medicinal: Yes

Listing Type

  • Home Delivery



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Terms And Options

  • Base lease term through December 2023
  • (2) five-year options to extend through December 2033, offering 13 years of control
  • Current rent is $4,335 per month
  • Rent drops to $3,000 per month in month 37 of lease term
  • NNN Expenses