General Overview of Budding Alaska LLC Operation
Budding Alaska has been in operation since June 2016, having received an active status by AMCO enforcement during the application process. Budding Alaska had its final inspection by AMCO in early Oct 2016 and received final authorization to provide cannabis flower to the Alaska market, (wholesale only), at that time. Budding Alaska was among the first cultivators providing cannabis flower to the first dispensaries to open in the State in Dec of 2016.
Budding Alaska currently has solid working relationships with 3 dispensaries, 2 in Anchorage and 1 in Soldotna. References from these dispensaries are available upon request. We are currently working to add 2 additional dispensaries in different markets in order to increase brand recognition and more evenly distribute our product around the state.
Our business model has been to evenly divide our monthly harvest amongst our client dispensaries, each receiving 1-3# of flower of each strain per month. This normally has enabled our clients to sell out of product before the next harvest comes in, providing a steady flow of fresh flower every 30 days, +-.
We have found that, as we have “dialed in” our systems, we have steadily increased our production volume and potency. This has created a small excess of flower for the last couple of months. We have endeavored to work closely with our dispensary clients, to enable us to supply what and how much they need in a 30 day time frame. After having discussed this with our clients, we have decided to add 2 additional dispensaries to our client list. We have ongoing discussions with 3 new dispensaries at this time. The goal would be to spread our product over a larger consumer base, giving dispensaries a slightly smaller share of our total harvest, making it easier to sell out of last month’s harvest delivery while providing our product to a larger consumer base. The end goal is to always keep our customers “hungry” for our flower while still offering our product to an expanding customer base. We are however conscious of the need for our dispensaries to not compete with one another to sell the same product to the same customers. To avoid this we do not sell to dispensaries in the same area, preferring to spread our product over a wider geographic area.
Budding Alaska grows in an indoor controlled atmosphere using artificial MH & HPS lighting and hydroponic flood table systems. Our nutrient formula, provided by Advanced Nutrients, is all organic PH Perfect, and is tailored to the specific needs of the plants at the specific time in their life cycle that these nutrients are needed. As a result we produce a very high quality product that has received a very favorable following from consumers. We currently maintain 15 strains and continually add and/or discontinue strains as our clients request one strain over another.
We operate on a 120 day life cycle for plants.
Clones are taken from mother plants and rooted for 3-4 weeks. As soon as the veg tables are cleared of plants moving into the flower room, the tables are cleaned and the clones are transplanted onto these tables to begin their vegetative cycle which last approximately 30 days. Each cycle consists of 82 plants and normally 6 strains. The veg plants moved from these tables land on 3-4 tables in the flower room where they will be grown under HPS lighting for approximately 60 days to harvest. We run 2 cycles of flowering plants at a time in the flowering room 30 days apart in their life cycle. Each cycle batch is provided customized nutrients from a reservoir dedicated to that plant cycle.
Upon harvest, the plants are cut, weighed with the wet weight recorded in Metrc, (the State of Alaska reporting program), and moved to the drying room to be limbed and hung for 5-7 days. At this time the flower is removed from the stalks and held in totes to cure and await final trimming and packaging which usually takes an additional 5-8 days.
Upon final packaging, (we bulk package only), the produce is split up and delivered to our client dispensaries.
Unrealized Expansion Opportunities
Budding Alaska’s cultivation is located in a 4500 SF warehouse in Seward AK. Currently only half of this space, 2250 SF, is in use for the business, the additional space is currently vacant.
A new operator could utilize this space for better effect by expanding the grow into it, expanding into another licensed operation such as a dispensary, manufacturer, extractor, etc. Currently there is not a dispensary in the Seward area.
In addition, the property includes the 1400 SF residence on approximately 2.25 acres. This ground could be utilized as an outdoor seasonal cultivation. The property is zone GU.
This property and business are offered for sale at $1,800,000.