Ownership Models

2023-GOING FORWARD MARKET FORCES

During these challenging times, the cannabis industry in California has seen sales gains unlike any year since legalization. Many craft-growers are deciding to go legal, considering the challenges of conducting business in an increasingly dangerous black-market. With hundreds of thousands of outdoor and hoop-house grown plants taken offline by recent wildfires, many growers and large farms are now deciding to move operations indoors.

Further, many multistate brands are now looking to expand operations and enter the lucrative California market.  These retailers can simply lease space at PowerPlant Park and instantly replicate operations, leveraging state-of-the-art onsite processing, manufacturing and packaging facilities.  The Park also provides statewide retail/wholesale distribution. Canna-investors will find the Park an easy way to invest at arm’s length with substantial ROI.

A LEASE & GREENHOUSE PURCHASE AT POWERPLANT PARK

Tenant buildings are designed and manufactured by Nexus of Colorado, the premier builder of hybrid indoor mixed-light greenhouses in the US.  The buildings have been significantly upgraded with the most advanced mixed-light technology available.  Internal systems are fully integrated and controlled through a dashboard interface on a phone or tablet, (access from anywhere in the world).

PowerPlant Parks intention is to create a community of like-minded individuals, everyone focused on growing superior craft-cannabis for a vast California marketplace.

Distribution Plan Ownership Models

Hybrid Indoor Mixed-Light Greenhouses

Built and designed by Nexus of Colorado the premier provider of mixed light greenhouses in the United States.

Greenhouse ownership includes :

  • Structural foundation, complete greenhouse construction
  • Securing Certificate of Occupancy
  • Electrical, mechanical, and plumbing installation
  • Greenhouse interior systems design/integration
  • Supplemental LED lighting provided by Fluence
  • Automated nutrient dozer
  • In-canopy, manifold driven C02 infusion
  • Heating and evaporative cooling systems
  • Trough and gutter irrigation system, rolling benches
  • Automated light-deprivation
  • Air handling and mixing, (in separate work corridor)
  • Pest prevention, odor control, circulation fans
  • Wireless control, from tablet with PowerPlant Park installed dashboard to manage all internal systems, (including control of the light spectrum during bloom cycle)
  • Ubiquitous quantum dots, film that converts sunlight into red-orange spectrum light that plants crave when flowering. The light, (over 50 non-bias studies) increased yields by an average of 16%

Tenant-Grower Model

  • Greenhouse Purchase: $700,000; $350,000 upon execution of Agreements plus 6 payments of $58,333 months 2-7 during construction, (interest free)
  • Tenant acquires State License w/PPP managed 100% by Be Green Legal Cannabis Consulting and Licensing Experts
  • Rental Rate: $5 per sq. ft. includes all utilities, security, maintenance, only monthly expense is power
  • CAM Fees: included in monthly rent
  • Term: 5-year initial term, with 3 five-year renewal options
  • 1st, last and security deposit: due upon lease execution
  • Crop Purchase Agreement: tenant-grower has option to enter into an agreement whereby PowerPlant Park sells tenant harvest Tenant receives 75% if sold wholesale and $2,700 per lb. in sold retrial. PowerPlant Park expects to sell 80% of all production retail
  • Tenant may sublease Unit upon PowerPlant Parks approval of subtenant and terms

Tenant-Investor Model

  • Greenhouse Purchase: $700,000; $350,000 upon execution of Agreements plus 6 payments of $58,333 months 2-7 during construction, (interest free)
  • Upon payment in full tenant receive legal title to building and all its contents
  • PowerPlant Park leases structural pad from Divine Development Group and Greenhouse from tenant-investor through a Second Sublease Agreement, removing any direct involvement in operations and licensing by the tenant-investor
  • PowerPlant Park manages all production, wholesale and retail distribution
  • Under the Second Sublease, PowerPlant Park pays quarterly rent to tenant-investor of $125,000. Quarterly rent begins 90 days after Certificate of Occupancy.
  • Purchase can be documented to qualify for a 1031 exchange

TRUE Turnkey Opportunity for Cultivator’s, Brands, MSO’s & Canna Investors

PowerPlant Park’s has designed & engineered its 44 tier 2 indoor mixed-light buildings to produce the highest grade of cannabis flowers and extracted products in the State of California. Manufactured by Nexus/Propiant of Colorado, (the premier provider of indoor greenhouses in the US), each Unit is equipped with state-of-the-art mixed-light technology for lighting, irrigation, environmental control, CO2 infusion, pest mitigation and feeding management.

From the purity of the water to superior genetics, exotic strains, and organic inputs, PowerPlant will always strive to provide the Parks cultivation team and tenant-owners with the most optimal conditions in which to hone their craft. Ownership at PowerPlant Park includes a CUP and legal address and eliminates over 2+ years of effort and significant capital expense in obtaining city and state license and permit approvals with no guarantee of regulatory success.

PowerPlant Park’s has two Units left in Phase I, we are currently leasing 125,000 sq. ft. of canopy in Phase 1-A, and II, where an additional 28 Units are available. With the demand for indoor space higher than ever, turnkey legal space in the San Francisco Bay Area is almost impossible to find. Considered by many as the #1 market for cannabis connoisseurs and #1 market in the State by far for retail sales. Many craft-growers are deciding to go legal, considering the challenges of conducting business in an increasingly dangerous black market. Cannabis investors will find the Park an easy way to deploy capital at arm’s length with substantial ROI. Multi-state operators wanting to enter the California market can simply lease space at the Park to expand/replicate their brand. Our full-service processing and manufacturing facilities can handle all branding and packaging requirements.

Model Highlights

  • In the tenant-Investor model PowerPlant manages production and distribution. In the tenant-grower model tenants are paid $2,700 per lb. once product is sold through the Parks retail outlets, 25% if sold wholesale,(approx. 2,000 lbs. of production per year per greenhouse). Negotiations underway to sell 1st, possibly 2nd harvest to prominent California brands that have retail distribution but no cultivation.
  • Gross, (wholesale) are forecast to be approx. $4.0M per greenhouse, net revenue is expected to be $1.4M-$1.8M. Gross revenues for retail over $12M. See accompanying spreadsheet for projections and assumptions for both models.
  • Each greenhouse will produce six harvests per year in a bloom-only rotation. Flip-ready teens are raised under an exclusive agreement with Phinest Cannabis that includes exclusive Zero-GeN tissue culture genetics

Park Inclusions:

  • 24-hour on-site security, including drone system, front guard-gate, and sensor security fencing around entire property
  • City/state permits and licenses managed by PowerPlant Park with assistance from our legal counsel through to issuance of tenant’s certificate of occupancy and state cultivation license
  • State compliant camera viewing system installed in tenant greenhouse, with 24-hour viewing from any mobile device
  • 40 hours of professional consulting with PowerPlant’s master growers, scientists, and other on-staff professionals
  • 24-hour access to PowerPlant Park restaurant and conference center, including office space, phone lockers, boardroom, kitchen, large decks, unobstructed panoramic views to San Francisco Bay, Mount Tamalpais, and Marin County mountains
  • Access to PowerPlant’s state-wide network of wholesale Distributors and retail outlets
  • Access to at will testing lab; portable testing equipment for cannabinoid profiles, moisture; data that tenants are able to adjust lighting, feeding, other environmental systems for desired outcomes.

Additional Park Amenities:

PowerPlant Parks conference center, (as part of Phase I) will include many additional amenities, including a real estate & leasing office, Park engineer, plumber, electrician, maintenance staff, MMJ insurance office and state/local compliance advisory expert. It will include a full-service multi-media board room, small offices, and employee training center in conjunction with Green Flower Media, (Certifications) and the City of Richmond, RichmondWORKS.

TIER 2 INDOOR MIXED-LIGHT GREENHOUSES PROVIDED BY NEXUS OF COLORADO-premium builder in the US

Upgraded interior systems, over $250K in enhancements including:

  • Custom version, (38′ x 96′) “Vail 420” indoor Tier II, mixed-light greenhouse with 3,044 ft. flower zone. Plus 488 sq. ft. work corridor/air-plenum and custom built clean/dirty room w/UV light, (prior to entering the flower zone). Each 600 amps of power
  • 4 Quest 335 high efficiency dehumidifiers
  • Custom Axeon AT in Unit reverse osmosis filtration
  • A Solar Soft Max glass roof covering-corrugated polycarbonate with high-light transmittance and high-diffusion properties
  • Metal side and end walls, 29 RFP rated gauge corrugated metal
  • One 3′ x 7′ RFP steel insulated main door plus two RFP 6′ x 7′ insulated double doors
  • End-wall gable vent with automated VC100A vent motor
  • Three vertical air-flow fans by Vostermans for “through canopy” air circulation
  • Two Coolair exhaust fans for below-curtain cooling plus one Coolair peak exhaust fan for above-curtain dehumidification
  • Accordion insect screen over air-intake vent
  • FogCo odor-mitigation system for all exhaust fan
  • Thirteen 5′ x 32′ rolling benches with bench top and trough/gutter irrigation systems
  • Netafrim drip system supplying six row-grow zones plus Dosatron fully automated system by E. Anderson Seed Controller for “crop steering”
  • 1500 gallon fresh-water storage tank, (stainless steel), providing two-day capacity
  • Fully automated light-deprivation system including triple-layered blackout curtain
  • Ubiquitous Quantum Dots, UbiQD enhanced spectrum nano-film converts short wavelength photons (blue & UV) to longer wavelength photons (red)
  • Two Lennox heaters (LF24E-300S) for temperature control in main grow zone plus one heater (LF24E-145S) for air plenum (also used for additional winter-time dehumidification)
  • Fully automated cloud-based Wadsworth Environmental Controller, including the integration of all interior systems, managed from a dashboard on supplied tablet
  • 55 custom LED bloom arrays, O6i by Fohse, 1200W of supplemental light designed specifically for hybrid indoor mixed-light greenhouses. Greater photon density leads to more carbon assimilation, which means more The O6i packs more photons into each footprint than any other greenhouse light on the market and is paired with a spectral distribution ideal for complimenting natural sunlight. Includes wireless control system to adjust intensity photo period and spectrum-bundled with ‘Light Harvesting’ sensors that measure the natural light in your greenhouse, (cloud cover/seasonal day light fluctuations). The O6i with Light Harvesting can self-adjust in increments as little as 1% in real time based on the ever-changing light conditions in the greenhouse
  • 1,144″teens” are in place atop custom rolling benches, (the first of six bloom cycles per year)
  • Automated carbogation system-CO2 enrichment, custom built in canopy+ 2nd system for automated misting
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