Industrial Scale Extraction - Canadian Investment Opportunity

CannaBusiness
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TL;DR for those of you who don’t like reading novels:

  • My private licenced company - EnCann Solutions Inc. - is raising $1m CAD / ~$800k USD for our CBD/THC extraction operation in Kelowna, BC, Canada.
  • If you give us money, we will give you shares (equity) or an interest rate (debt) or a mix of both. We’re flexible.
  • We only have a single share class, no supermajority MegaVeto founder share bullshit here
  • If none of you give us money, we’ll still get where we need to go. It’ll just take us longer. And you won’t make any money in the process.
  • When CBD gets deregulated in Canada it’s :rocket: time.
  • This is us, as seen on page 3 of our pitch deck:

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Until we get the ~$1m the court says we’re owed by the guy who screwed us over two+ years ago, we need more money than we presently have in the bank.

We should have a reasonably significant amount of revenue in August, and we could eventually just fund everything out of operations, even if we don’t ever get the money we’re owed. But that takes time, and I don’t like waiting - I want to do it BIG and RIGHT and FAST.

My personal motto is more is better, that’s what more means.

I want to be able to rip through 1000kg/hr of biomass come harvest time. On ~300 kW of energy or less.

We’ve had a really hard time getting average investors up to speed on wtf we’re doing with extraction and why it’s awesome, probably because Canada is weird, math is hard, and they can’t be sure we’re not just selling snake oil.

I figure this is the place on the internet with the highest concentration of people who actually understand extraction, and it’s possible that one or more of you might have a pile of cash floating around that you want to turn into a bigger pile of cash.

We’ve got due diligence for days. Whatever you could possibly ask for, we’ve probably already given it to someone.

Here’s some stuff we’ve done recently as a company:

You may be asking yourself, who is this guy sticking his hand out for my hard-earned dollars?

Some of y’all know me, I’ve been here for a minute or two. But I’m sure a lot of you don’t.
For those that haven’t met or worked with me, I’m the guy who:

I have worked with and/or am presently working with @cyclopath, @MagisterChemist, @Photon_noir, and @tweedledew.

I think it’s possible that the above fine gentlemen may be willing to vouch for the fact that I’m not a scam artist, and that while I’m definitely a bit crazy and usually overly optimistic about things - that’s startup founders for you - that I might actually be able to put any money provided to us to good use.

I promise that there shall be no corporate boats or planes or ladies who charge by the hour until well after the company has paid all of its debts and dividends have been paid to the shareholders.

My philosophy: build the company first, boats and such come later. If you are willing to wait, you get much bigger boats.

PS: plz support @tweedledew if you can, he’s being fucked over right now too.

If you read all of that, you should probably swipe right.

My direct contact info is on our website, as is that of our CFO if you want to talk to him.

Feel free to hit me up here or wherever else with questions, hate mail, or cat pictures.

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Neeko wants to know what a half eaten bag of cat treats gets in equity.

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Kali said she travels well and wonders what sweat equity would return (even though cats don’t sweat).

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Ichi said you should pay him to add cat hair (the real spice of life) to your products. He will supply and provide retail product modeling photos.

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Really, though, best of luck! Had I money to throw around, I would happily part with some for you. Seems a great investment for those who can!

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Good luck @Lincoln20XX :tada: congratulations on getting this far

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Growly McBitchface

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and Chicken Nugget
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say that depending on the cat treats, they could possibly be convinced to end my life and sign my equity stake over to Neeko.

I’ve tried explaing that if I’m dead I can’t finish setting up the extraction system and the equity would be worth very little but they are adamant that I submit their offer for consideration.

We do accept sweat/fur equity, that’s the bulk of how the founders have earned their stakes. I will inquire as to OSHA’s stance on feline employees and report back.

Health Canada has unfortunately recently deemed cat hair to not be an acceptable addition to cannabis products, unless we can prove that cat hair is native to the cannabis plant and it’s not an after the fact addition. From what I can tell from the Regulations, this falls under the newly released vape flavouring rules.

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Good luck bro, I’m in the same boat, it’ll get there eventually.

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Can confirm!

Seen their facility!

They are indeed on top of the game. They’re lean, mean, and extraordinarily good on the extraction machine.

Would recommend. Would recommend giving them your money. Your family’s money. Your heirlooms. Everything you got. They will give it back to you and much more. They live right by where they work. They will work an unhealthy amount to fatten your wallets. This is a damn smart and dedicated group of individuals with their mettle well tested.

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Thank you for your kind words, sir.

I actually just moved, and cut my commute time in half. It’s down to 10 minutes now. (Couldn’t find anything closer. The Kelowna rental market is wack.)

That saved me from having to set up a cot underneath the microwave and rice cooker. I was thinking about putting one in the server/security room but it’s too hot in there in the summer.

I guess that’s one of the (dis?)advantages of being a private company. We’ve got less than 50 shareholders, and all but a couple of them are close friends and family. If I don’t turn this into something, I’ve got to figure out some way of rebuilding mom’s retirement fund. And my father-in-law’s. I’ve got friends who put their house down payment into the company. Ditto Ryan and Darcy.

They all did this because they believe in us.

So there is no Plan B for us on this one. No “oops, it didn’t work out, time to move on.”

Need a piece of equipment and we can’t afford it?
Time to figure out how to build it.

Need a custom PLC for your system because you can’t reprogram or certify the China one?
Time to become a PLC builder. (Good thing I’ve done a lot of robotics, control systems and arduino stuff in my past.)

Need to build things that require welding and can’t afford to hire a welder?
Buy a welder and learn to weld. (It turns out that it’s not all that hard to stick metal to metal. We’ll have a pro do any pressure or critical stuff, but I can build frames, tables, tanks, etc.)

I think on Monday we’re buying a smallish CNC plasma cutter and a metal brake/slip roll so we can fabricate control boxes, equipment cases, custom hvac ducting for the c1d2 space we’re going to knock up around one of the centrifuges, and lots of other stuff.

Now instead of waiting 1-3 weeks and $300-1000 when we need a custom pump and motor base for our membrane skid we can CAD it and have it off the machine and figure out what the next problem is in under an hour.

If you want something done right and quickly, you might as well do it yourself.

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What would the equity/ share price/% be?

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We’ve got people working for us who are all incredibly good at what they do.

I make the processes work and run around and do CEO things. Ryan keeps everything organized, Darcy, the banker handles the CFO/investor side of things, Barb, the former CRA corporate auditor, makes sure the books are rock solid. I’ve also got an awesome engineer working mostly under me, he’s a godsend.

(The working title of one of the videos we did with Barb is “compliance compliance compliance.” It should be out soonish.)

We never have to worry if @TheFeds walk in the door.

Many of the smartest people we know have generously offered their knowledge and assistance to us here at EnCann, and for that, we are humbled, and we thank them. We could not be the company we are today without them.

Without many of them, we would not be in existence today.

There are many others than those named here, of course. They say it takes a village to raise a child and the law does see a corporation as a person.

We haven’t finished a full valuation based on what we’re going to hit the ground running with now that we’re licensed, but Darcy and I are working on that. Things are moving very fast here and the disadvantage of a small team is that we don’t have a lot of people that we can say “hey do this” to and have it done.

We presently plan to set our new valuation in the first week of August. Until then, we’re priced at what we were prior to licensing, which I don’t particularly feel like advertising :slight_smile:

For now, anyone who wants to have an equity discussion please take a careful read through our deck and reach out directly to me or Darcy.

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Feel free to dm me, i cant really come there but id be a possible investor depending on the stuff you already know.

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I get asked some variation of this question a lot:
Our main concern right now is the price of CBD and CBD isolate. It has been on a steady decline over the years. How do you feel regarding the falling price and essentially increasing production on a product that seems to be already oversupplied? Based on your real-world experience what is your forecast of the price in the next 5 years?

Here’s our answer:

We follow the development and maturity of the US market very closely as we strongly feel the Canadian market will follow the same path with respect to pricing across all areas (cost of biomass, processing, API’s and eventually end-user products). Indeed, the cost of CBD distillate and isolate is falling in Canada – and we feel it will continue to do so over the next 18 months in particular (hence we’ve priced this into our financial models/forecasts). It’s true that prices have consolidated over the past few months, however, downward pressure remains and we are prepared for it. It’s a fast-changing industry, hence hard to make 5 yr pricing forecasts, although we feel CBD will end up trading like any other commodity input. This is how we’re setting ourselves up – to be the lowest cost, highest volume, commodity producer of CBD. We are confident our technology will allow us to withstand a significant fall in prices.

That being the case, we can summarize our forecasts as follows:

  • We expect the price of isolate to reach $1,000 CAD per kilogram no later than harvest 2022, or ~15 months from today.
  • Once CBD is de-regulated in Canada and the US legalizes federally, we expect prices in Canada to fall to the same as the US. This could happen within two years, or not at all.
  • When that happens, we expect the wholesale price of CBD could reach $250 CAD/kg or lower on large volume contracts.

We’re aware of an over-supply of CBD distillate, hence one of the reasons we are focusing on CBD isolate as currently there is no extraction company that we’re aware of that can serve as a high volume/quality producer & supplier. We feel the global market opportunity for pure CBD isolate will continue to boom over the coming years, especially as CBD finds its way into more consumer & health products and international markets open up.

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The EnCann Solutions guys are very understanding of the business climate and circumstances involving the Canadian cannabis/hemp landscape.

We’ve worked with a few Canadian licensed processors, and of them all, these guys knew/understood the most.

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Okay, so you need equipment — Why is utilizing a direct lender out of the question? Just curious…sounds like leasing solutions would be beneficial to your company at this stage.

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We’ve explored that, but keep running into some variation of:

  • You need 3-6 months operational revenue before we’ll look at you
  • YOU DO THE DEMON LETTUCE??!? GTFO
  • We don’t do Canadian deals
  • “Yeah we can totally make that happen” … and then no further response ever.
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I fully believe in you and your team! I wish there was some way for me to become part of it but sadly I’m all tied up and have no extra investment cash laying around that would help make a dent in this project.

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sent you a DM. Not sure if you’re looking hard enough.

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Maybe you should to offer me gainful employment until @Lincoln20XX can afford to import me :wink:

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Hmm maybe I should retitle this as the “help move @cyclopath to Canada” fundraising drive.

I really do need a centrifuge whisperer, especially as my redneck wizard is occupied at the present moment.

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so how much biomass can you currently process in a week?

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With the people we have on hand, and the equipment that is ready to turn on today, we could do 300kg per shift without too much trouble. I could probably push to 500kg or more with a few thousand in modifications and a little elbow grease.

If I were to dump an additional ~$50k into my big Chinese centrifuges to bring them up to Canadian spec, and get a couple more employees, I could probably bump that up to ~3000kg per shift or more.

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