Initiators of "closed coffeeshop chain" seek co-investors

Company history/background

National Government:

“The closed coffeeshop chain experiment aims to clarify whether the legal supply, purchase, and sale of cannabis are possible. The quality of this cannabis is also checked. This experiment is also referred to as the weed experiment or weed trial.” The government has set conditions and requirements for, among others, the prospective growers. These requirements were made public in mid-June 2020. The initiators submitted their application for a license within the deadline (no later than July 28, 2020). The government will grant a license to a maximum of 10 growers through a selection process.

Company activities

Initiators

The initiators have a successful background in the business world, including in ICT and healthcare. They are seeking co-investors and financiers with a similar, solid background in the business world.

The team has extensive experience and insight into all legal activities regarding cannabis and cannabis cultivation.

Unique selling points

Co-investing

From the moment the permit is granted: Although the initiators themselves have already started investing, co-investors are asked to join the investment from the moment the government has issued the permit. Consequently, the initial risk of ultimately not obtaining a permit is borne entirely by the initiators. An agreement has been reached with a municipality regarding the intended location, accompanied by a letter of intent from the mayor. An agreement has been reached with an experienced builder. The management team plus experts has been formed. As soon as the permit is granted and cultivation is successful, there will be a predictable and substantial return.

Other

Large-scale cultivation

The total financing of the project (including own contribution) amounts to approximately 11 million EUR, with the main expenses being:

• land acquisition and real estate development (including facilities for cultivation)
• energy consumption (!) for the first 12 operational months

The initiators are preferably seeking short-term financing of EUR 10M with a term of 18–24 months and a substantial return. Other forms of capital provision are open for discussion.