We leverage our extensive network of industry contacts to source potential investment opportunities, including identifying emerging trends and market gaps that may present attractive investment opportunities.

We conduct in-depth due diligence on potential investment opportunities, including analyzing financial statements, reviewing legal documentation, and evaluating the market opportunity and competitive landscape.

We work with clients to structure and negotiate deals that align with their investment goals, including developing term sheets and negotiating deal terms.

We provide ongoing support and guidance to help clients manage their portfolio of investments, including developing strategies for maximizing returns and minimizing risk.

We work with clients to develop exit strategies that maximize returns on their investments, including identifying potential buyers and negotiating sale terms.

Our Private Equity services enable investors to identify and evaluate potential investment opportunities in the private equity market. We provide a range of services that include market research, opportunity assessment, due diligence, deal structuring, and post-investment support, to help our clients maximize returns and minimize risk in their private equity investments.

Our Business Opportunity Sourcing team enables clients to identify and evaluate new business opportunities that align with their goals and objectives. We provide a comprehensive range of services that include market research, opportunity assessment, due diligence, and negotiations, to help our clients make informed decisions and capitalize on new opportunities.

We help clients develop and leverage strategic alliances and partnerships that drive growth and achieve their business objectives. We work with our clients to identify and evaluate potential partners, negotiate terms, and develop a comprehensive partnership strategy that delivers maximum value and benefits to all parties involved.

Our Venture Development services empower entrepreneurs and early-stage startups to turn their ideas into successful businesses. We provide support and guidance throughout the venture development process, from ideation to market launch, and offer services that include market research, business planning, fundraising, product development, and go-to-market strategy, among others, to help our clients achieve their business objectives and reach their full potential.

Case Study Overview

This case study showcases how our Private Equity Team successfully sourced, negotiated, and structured a private equity deal for a start-up cannabis grower and processing company aiming to secure a license in Maryland. The case study highlights Full Ton Strategies' comprehensive approach, including deal sourcing, due diligence, lobbying efforts, deal structuring, venture management, sustainable facility design, security plan, community engagement strategy, and a research & development partnership with a local university.

Deal Sourcing:

Full Ton Strategies deployed a strategic approach to identify potential investment opportunities in the Maryland cannabis industry. The key steps taken during the deal sourcing phase were:

Market research and analysis: Conducting an extensive evaluation of the Maryland cannabis market, including regulatory frameworks, market size, growth projections, and competitive dynamics.

Industry connections: Leveraging established networks and partnerships within the cannabis industry to identify promising start-ups seeking capital investment and license acquisition.

Due Diligence:

The key elements of the due diligence process included:

Regulatory compliance: Evaluating criteria of Maryland's cannabis regulations, licensing requirements, and zoning restrictions.

Financial analysis: Development of a robust business plan, financial projections, cost structures, and capital requirements.

Operational Strategy: Development of best-in-class cultivation and processing methodologies, quality control processes, supply chain management strategy, and compliance with industry best practices.

Legal review: Engaging legal experts to review contracts, licenses, permits, and any potential legal liabilities.

Lobbying Efforts:

Recognizing the importance of navigating the complex regulatory landscape, Full Ton Strategies engaged in lobbying efforts to support the start-up's license acquisition. This involved:

Government relations: Building relationships with key stakeholders, including legislators, regulatory bodies, and industry associations, to advocate for favorable cannabis regulations and licensing procedures.

Policy expertise: Leveraging the firm's knowledge of cannabis legislation to provide insights and recommendations to influence favorable regulatory changes that align with the start-up's objectives.

Compliance support: Assisting the start-up in preparing and submitting licensing applications, ensuring adherence to all regulatory requirements and protocols.

Deal Structuring:

Our team lead efforts to structure the private equity deal in a manner that aligned the interests of all parties involved. The key components of the deal structure included:

Equity investment: Determining the equity stake investors would acquire in the start-up in exchange for the required capital infusion.

Funding allocation: Allocating funds for license acquisition costs, facility development, equipment procurement, research and development, marketing initiatives, working capital, and contingency reserves.

Governance and control: Defining the governance structure, board representation, and decision-making authority to ensure effective oversight and collaboration.

Milestone-based financing: Structuring the deal with tranches tied to predefined milestones, allowing for progressive funding based on the start-up's achievement of key targets and performance indicators.

Venture Management:

To ensure the start-up’s growth and success, venture management support was also included into the structure of the deal. Key venture management activities incorporated were:

Strategic guidance: Offering industry expertise, market insights, and operational support to optimize cultivation techniques, processing methods, supply chain management, and distribution strategies.

Talent acquisition: Assisting in recruiting top-tier talent, including cultivation experts, processing specialists, compliance officers, marketing professionals, and management personnel.

Financial management: Providing financial planning, budgeting, and performance tracking to ensure optimal resource allocation, cost management, and financial sustainability.

Expansion planning: Assisting the start-up in identifying opportunities for geographic expansion, potential partnerships, and new market entry strategies.

Sourcing Experts for a Sustainable Facility Design:

Recognizing the significance of sustainability and environmental responsibility, Full Ton Strategies sourced industry-leading experts to design an environmentally friendly facility for growing and processing high-quality cannabis. The key considerations for the facility design included:

Energy efficiency: Incorporating energy-efficient systems, such as LED lighting, advanced HVAC systems, and smart automation, to reduce energy consumption and carbon footprint.

Water conservation: Implementing water-saving technologies, such as drip irrigation and water recycling systems, to minimize water usage and support sustainable cultivation practices.

Waste management: Designing waste management protocols, including composting and recycling programs, to minimize waste generation and ensure compliance with environmental regulations.

Green building practices: Utilizing sustainable construction materials, incorporating renewable energy sources, and integrating eco-friendly design principles to achieve sustainability standards.

Security Plan Implementation:

Full Ton Strategies facilitated the development and implementation of a comprehensive security plan to ensure the safety and compliance of the start-up's operations. Key components of the security plan included:

Physical security measures: Designing secure access points, video surveillance systems, intrusion detection systems, and perimeter controls to safeguard the facility and prevent unauthorized access.

Personnel training: Implementing comprehensive training programs to educate employees on security protocols, emergency response procedures, and compliance requirements.

Inventory management: Establishing robust inventory tracking systems and controls to prevent theft, diversion, or loss of cannabis products.

Compliance monitoring: Conducting regular audits and assessments to ensure adherence to security regulations, mitigating potential risks and vulnerabilities.

Community Engagement Strategy:

Full Ton Strategies assisted the start-up in developing a community engagement strategy to foster positive relationships with the local community and gain support. Key elements of the strategy included:

Education and outreach: Conducting educational programs and workshops to inform the community about the benefits of medical cannabis, responsible consumption, and the start-up's commitment to sustainability.

Job creation: Prioritizing local hiring and offering job opportunities to community members, thereby contributing to local economic development and job growth.

Community initiatives: Supporting local charities, sponsoring community events, and participating in initiatives that align with the start-up's values and social responsibility commitments.

Open communication: Establishing channels for dialogue and feedback with community stakeholders to address concerns, answer questions, and maintain transparency.

Research and Development Partnership with a Local University:

Full Ton Strategies facilitated a research and development partnership between the start-up and a local university to drive innovation and advancements in the cannabis industry. Key aspects of the partnership included:

Collaborative projects: Engaging in joint research projects with university faculty and researchers to explore cultivation techniques, genetics, product development, and extraction methods.

Knowledge sharing: Facilitating the exchange of industry insights, scientific expertise, and technological advancements between the start-up and university researchers.

Intellectual property protection: Ensuring appropriate agreements and safeguards were in place to protect intellectual property rights and promote fair collaboration between the start-up and the university.

Student involvement: Providing internship opportunities and supporting educational initiatives to encourage student engagement, learning, and career development in the cannabis field.

Results:

Our team’s expertise in deal sourcing, due diligence, lobbying, deal structuring, venture management, and strategic partnerships contributed to the strategy development for the start-up's growth, sustainability, and positive impact on the community and environment.