We’ve never stopped believing that someday the cannabis industry would start behaving like a normal one. And in many ways, it still doesn’t.
Yet, with the initial “green rush” over in many states, the laws of economics are starting to kick in. Lenders want their money back, and the rent needs to get paid.
This is why, after years of waiting for the right time, we’re excited to announce a new service offering to the Climate Resources Group portfolio: CannaDiligence.
Origin Story
CannaDiligence started in earnest when Sam met Michael Gillespie, PE at a Benzinga Cannabis Capital Conference event. Given his role as a “Facility Engineer to the Stars,” Sam thought Mike would be a good person to answer his most burning question:
“Why, despite all the lip service, don’t cultivation operators and their investors meaningfully include reducing operating costs in their list of top priorities?”
We both shook our heads, incredulously, thinking how such an obvious thing shouldn’t be so hard.
We’ve heard lots of answers to this question over the years. Simply put, the why, how, who, where, and what of operating a more efficient cultivation facility were unclear or unconvincing.
But we persisted and are now building out this service dedicated to helping operators, their investors and others in the finance supply chain understand the true state, potential, and value of the physical cultivation asset.
What’s CannaDiligence?
At its essence, CannaDiligence is a rigorous evaluation of a cannabis operator’s financial and operational health. We dig into COGS line by line, separating true production costs from noise so operators can see where margins are being built or quietly drained. We look at the business through a grounded SWOT analysis that reflects real conditions on the ground. The report ends with a ranked set of recommendations tied to clear ROI, showing which fixes deliver meaningful value.
Spreading the Word
We’re grateful to the PufCreativ team for letting us share our thoughts on their blog, Cannabis Cultivation Facilities Deserve Their CarFax Moment, about why this is the moment when the laws of economics need to apply to this small sliver of the cannabis industry.
Reach out to see if your facility could benefit from a CannaDiligence evaluation.