Extraction/Distillation Business for Sale

Project Sammy is a unique chance to acquire a firm that holds the global leadership position in extraction/distillation systems. The massive growing demand for extracted  products is accelerating the demand for their equipment, and the right acquirer could capitalize on this  market  position. The company doubled revenues year-on-year from 2010 to 2015, which then declined in 2016 due to the US election and market uncertainty.  2017 has seen the stellar growth return with projected profitable revenues exceeding $8.5m by the end of year 2017

Company Situation / Objectives

Project Sammy specializes in the design, manufacture, research and development of a wide range of patent-pending botanical CO2 extraction equipment.  Although the Company’s products have historical and potential use in a vast array of industries, the overwhelming majority of sales to date come from the cannabis industry for use in the production of cannabis extracts and concentrates due to the company’s early market entry and botanical extraction expertise.

Project Sammy’s unique advantage includes its capability to extract significantly greater throughput volume than competitive offerings. Sammy has patented IP for CO2, recently submitted patent pending for a new distiller design, all in a market with exceptional growth potential.  The company’s rapid growth has been driven by the increasing demand for cannabis-related products as legalization globally continues to be relaxed.  As the acknowledged technological market leader, the company has proven it can successfully capitalize on this increasing demand with YOY expanding Revenues and profitability.

Increased investment is now needed to reduce lead times and add inventory and market new offerings into new markets.  A purchaser with the ability to expand production at a higher profit margin could benefit from all of these factors. Project Sammy already has an export license and is in high demand in global markets.

Competitive Environment

The market has become saturated with may new entrants, often making boastful and untenable promises.  Clients have become wary of such operators, and Project Sammy, with its 2o plus year history and industry leadership is highly regarded by the market, as demonstrated through rapidly rising repeat orders.

Financial Highlights

Detailed financials: AVAILABLE UNDER NDA

2015 (actual) = $8.0m Rev, EBITDA  $450k

2016 (actual) = $4.4 Rev, EBITDA  -$110k

2017 (forecast) = $8.5m Rev, EBITDA  $1.4m

2018 (forecast) = $16m Rev, EBITDA  $3.7.0m

Market Growth

9 new states passed medical marijuana legalization in the 2016 US election including California (the largest potential market on Earth). 2018 is expected to be a banner year with further growth in 2019, 2020 and beyond.  Worldwide, entire countries such as Canada, UK, and Germany are legalizing cannabis and the opportunity for large scale systems is exceptional.

Project Sammy’s R&D department is becoming a profit center as many successful research projects are turning into processing contracts. Kava kava, mitragyna speciosa, pitcher plant, chrysanthemum, and oregano de la Sierra are examples and Sammy continues to create IP and new technologies that are patent pending with more in process.

Non-Cannabis Markets

The potential uses of the technical capability of  project Sammy are extensive. These can range from the creation of unique beverages (e.g. flavored spirits such as gin), sensitive fragrances (e.g. in cosmetics, perfume, and flavorings), within medicinal offerings, in nutraceuticals, in a broad range of foods (e.g. food oils, cookies, cakes, and processed foods).

Project Sammy has always served industries besides cannabis. Herbal medicine, perfumes, flavoring, biofuels, and university research has always been core.  In 2016, the company focused efforts to gain market share in non-cannabis industries. This is starting to payoff in 2017.

Strategic Highlights

Investors will appreciate the value of the inherent IP, the technology and know-how that Sammy possesses, alongside the current management team having proven their capability to run a profitable ever-growing business. Savvy investors will also recognize the potential to exponentially grow the business with the influx of R&D, improve time-to- market, and the exploitation of new products and markets.

Expert Owners and Management Team

CEO – Developed brand and reputation. Helped develop entire Cannabis industry through tech innovation and pathways for legalization.  Requested speaker nationally and Internationally.

Chief Technician Officer – Designer and inventor of industry leading applications.

Location 

Washington State, USA. (Owners open to relocation after sale)

Sale / Investment method

Offers Invited for the acquisition of the company. Current owners open to continued involvement in the business for a period after the sale.

Contact
Karla Horwitz
Principal
Seattle, USA