Provisional Distribution and Manufacturing License
Manufacturing and Distribution licenses and facility in Sacramento, centrally located near an International Airport, the Bay area and I-5.
Type 6, Type N Provisional manufacturing license along with Provisional Distribution license priced to sell. Two licenses and companies for the price of one with options for ten year lease. Less than 75 Type 6 Licenses were awarded in California in 2018.
The Distribution and Manufacturing Licenses are provisionals and awaiting their Annual. Which means the sellers have submitted the annual license application and are awaiting their annual license for 2019.
Type N
This license type allows you to create a brand factory of cannabis edibles, beverages and every other infused products. White labeling and co-packing are no longer allowed unless you are an equity owner in a license type. 75% of cannabis brands have gone extinct and out of business due to regulation. These type N infusion licenses are very rare with less than 75 being handed out in 2019 in California. Those numbers can also be verified on the BCC and CDPH websites. Below is the legal definition of Type N and what they can manufacture.
“Type-N, for manufacturers that produce edible products or topical products using infusion processes, or other types of cannabis products other than extracts or concentrates, but that do not conduct extractions. A Type-N licensee may also package and label cannabis products on the licensed premises.
“Infusion” means a process by which cannabis, cannabinoids, or cannabis concentrates are directly incorporated into a product formulation to produce a cannabis product.
Edible & Topical Manufacturers
Producers who create edibles, topicals, or other cannabis products that rely on infusing cannabis concentrates should consider the Type-N license. Infusion license holders will comply with the same state level requirements that Type-6 manufacturers must adhere too, which is less stringent than Type-7 regulations. In many cities and counties where Type-7 activities remain banned, Type-6 & Type-N activities may be the only available options.
The Type-N license type is an important feature of the broader cannabis manufacturing category. Under the previous medical collective model, manufacturers had more freedom to obtain source material and conduct their own extraction and infusion activities. The collective model had less oversight, fewer regulations, but arguably, more risks. With legalization, costs and barriers to entry are increasing throughout the state, requiring some cannabis businesses to specialize and limit their operational scope.
A Type-N license holder would need to purchase cannabis concentrate through a Type-11 licensed distributor or directly from a Type-6 or Type-7 license holder and transported via a Type-13 “Distributor Transport Only” entity. Once the concentrate is obtained, the Type-N license holder may conduct infusion techniques to produce cannabis products other than extracts or concentrates, and package/label those products on the same premises. The final products can then be sold to distributors who supply cannabis retailers. The challenge is to produce at such a scale where the final retail price, after passing through multiple licensed entities, subject to state and local taxes, remains at a competitive price point.”
Beyond the licenses the sellers have extremely detailed company paperwork, SOP’s, revenue projections, construction and operational costs, flow process diagrams, building plans, and everything a new operator would need to roll out and be generating revenue in 2-4 months. We can share this information once a buyer is vetted properly.
Asking Price: $375,000
Must sign an NDA/Waiver and have proof of financials before any other detailed information is released.
