[CANNABIS UPDATE] NEW AND IMPROVED TERMS
Hands up if you started a project and then … something happened!
During our most recent trip to California where we signed up our local legal counsel and new CPA who specializes in the Cannabis industry, some new information and tax implications came to light.
As a result, we have adapted our build-out planning for the farms, modified the financial projections and changed the profit sharing split in our California Cannabis farm syndication.
The Class A members (YOU, “the Investors”) share of the net profits for 7 years, is increased from 35% to 60%.
The IRR will be very similar at this higher profit share, which was our intended purpose for the % change.
The Class B members (“the Principals”) share of the net profits for 7 years is reduced from 65% to 40%.
We took this option to relinquish the lions share for the benefit of our investors
The remaining terms of the deal remain the same. After 7 years, the Class A members receive a 100% return of their initial capital contributions, above and beyond the 141% ROI received during the 7-year term, and they retain a 10% equity stake in future cashflow and/or equity appreciation for the long term.
As a syndicator, especially in an economy and industry that is constantly evolving, you need to be able to pivot and adapt.
This is exactly what we have done.
As a syndicator you also have a responsibility to your investors to be upfront, fair and honest. So, we have reduced our participation to ensure our Class A members still receive a satisfactory IRR.
As these are material changes to the offering, we needed to have the PPM documents amended to reflect these changes.
The updated Executive Summary is attached here for your review.
If you have been following the launch of this new and exciting Specialty Agriculture Offering, and providing you are an Accredited Investor, you still have the opportunity to participate and now…your participation has increased to a 60% share of the profits, giving you a 20% IRR and 141% ROI.
To discuss the changes, the new and improved terms and to reserve your seat on this exciting journey, CLICK HERE and schedule a call.
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