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Blue Cord Farms, INC

You grow your crops, we will grow your business.

Closed on 05/05/18

65% funded

min$20k

max$1070k

funding goal 

Reg CF

exemption used 

$5,800,000

pre money valuation 

$100.00

min investment 

$12,720

amount raised 

24

investors 

Security Type
SAFE REV
SAFE: Simple Agreement for Future Equity
$5.8 mil Valuation Cap
REV: Revenue Participation
10% Revenue Split
3X Returns
Example: If you invest $1,000, you have the potential to get back $3,000.

Who we are

The US medical marijuana market is booming, with Florida expected to become the second largest market after California. New state laws now allow Medical Marijuana Centers to produce a much wider variety of products with fewer restriction and considerably expands the number of qualifying patients.

In 2016, after racking up a list of pills that the Veterans Health Administration (VA) had given him, Robert began to supplement the pills with cannabis, and it made a dramatic difference in his life. Robert had a friend with whom he served in the United States (U.S.) Army who had died from an accidental overdose of pills. Some of those pills were the same pills that Roberts VA doctor had prescribed for him. It was the medical cannabis that kept Robert off of the pills and out of the grave.

about.png

Mat and Robert came up with the idea of Blue Cord Farms. Originally, it was to be located in Texas, but with all of the cannabis legislation dying there, they turned their heads to Maine, where Mat was already growing. The concept is simple: Blue Cord Farms, Inc. is a real estate company that purchases the land, greenhouses, and buildings needed to develop turnkey farming operations. The farms are available for rent and can be built to the specs that cannabis farmers need.

Problem

This in-demand industry is new and growing. Our company has the ability to become a brand name in a new industry. For growers who want to become involved with the legal side of growing cannabis, the task of growing becomes more complicated. No more growing several plants in the middle of nowhere. Today, a grower can start a business, but this requires detailed information and higher cost. The grower must perform the following:

  • find a place to grow,
  • buy the equipment,
  • get it insured,
  • find out the costs of the greenhouses,
  • make sure that they are up to code and in compliance with local zoning laws,
  • design a watering system,
  • obtain a security system, and
  • excavate.

The demand is there, and the state has voted in favor of expanding this industry. Many businesses will start, and many farms will grow. We do believe that this plant will revolutionize medicine and the treatment of posttraumatic stress disorder (PTSD). We would like to do our part by providing growers with a place to come, where for one monthly payment you can have a fully functional farm for growing and creating jobs. Our goals are the community and their vets.

Solution

We will develop an ecosystem that our business partners have formed and that will allow for licensed growers to maximize their canopy space. With five grow seasons per growing facility, they should be able to meet this demand with ease.

For our business to succeed, we will need investors.

The cannabis and hemp industry can be divided into two sections:

  • The agriculture part, where the business is growing the plant, but because this is not as easy as growing tomatoes is, for example, a big need for "suits" exists
  • The business component: regulatory, compliance, technology, and real estate

The real estate part of the second section will be our focus. We currently have a company that wants to rent out one of our farms. We will provide a turnkey operation that will be on 6-10 acres of land. We will excavate the land, run power and water, and build three greenhouses with a watering system that could have the potential to have five grow seasons in a year. Licensed growers will be able to move in and begin a grow season immediately.

To accomplish this task, we will partner up with a consulting company to ensure that the building is built within the regulations that the state requires.

These companies will assist with developing the following:

  • Workflow system complete with tracking system
  • Farm design to create a lean production rate
  • Standard operating procedures
  • Operations design

Blue Cord Farms will supply all of the real estate and necessary machines and tools to any grower who wants to receive a license from the state of Maine. The cost to the grower is a base rent + 20% of monthly revenue.

Just as with any other rental property, Blue Cord Farms is responsible for the maintenance and security of the farm only, not the product that grows there.

We think this focus will bring our investors more benefits due to potential scalability.

Achievement and traction

In the blossoming recreational marijuana industry, the old saying "build it and they will come" holds true.

There will be many competitors who flock to Maine as the green rush develops into a million dollar cash cow industry, almost immediately. History shows that at the beginning, there is a quantum jump in demand from expected estimates in every state that has voted for a regulated cannabis market. It is what businesses do 6 months to a year after the licensing commences that establishes longevity and ensures dominant growth in market share. In an industry that will have no television advertising and limited print reliability, it is important to utilize every possible measure of exposure to have a brand seen.

Blue Cord Farms has developed a multi-pronged marketing scheme to absorb not only the first waves of cannabis demand but to retain a clientele and open up innovative avenues for new consumers. It is our firm belief that a business must be ever present in the minds of the consumer when they desire a product or service we can provide. Our utmost goal is to use every possible tool in our organization to get our brand and product into the hands of the cannabis consumers of Maine.

Below are a list of sources we will use to sell both our brand and the brand of our growers.

  • A Dispensary
  • Wholesale Business-to-Business Distribution
  • Trade Shows and Expos
  • Event Marketing
  • Press Releases
  • Community Outreach Initiatives
  • Social Media

Market

Size: According to the United States Census Bureau, Maine has a total population of 1.329 million people. The most recent Gallup Poll conducted in August 2016, suggests that 13% of the national populace regularly consumes, while another 43 % claimed to have used it once in their lifetime. While these numbers may be quite liberal for some states like Texas or Florida, they are conservative for a state like Maine, which has had legal medical Cannabis for nearly 2 decades. Data from the Maine Medical Marijuana Program claims over 24,000 medical cardholders. Therefore, it is safe to count a total market reach within the state at approximately 750,000 regular and potential consumers.

Growth Potential: Before we can accurately analyze growth, we must take note of how the use of Cannabis has impacted new markets with pre-existing medical programs.

medical.png

If we apply these statistics in correlation to the 5% medical cannabis YOY growth, the following 7-year projections of cannabis consumption in Maine can be expected:

Competition

As of now, no competition with our business model exists. However, our clients may have to compete with other companies. Eight licensed medical dispensaries that five companies run currently operate within the state. They are our most direct form of competition in the open free market. These companies have their own farms and attract our potential clients/growers by hiring them instead of allowing them to create their own companies. Our model allows for better competition. When we have several farms, these farms could compete with one another as well as with the companies below.

  1. Wellness Connection (WC): This is perhaps the most dominant medical cannabis company in Maine. Established in 2011, it operates four state-licensed medical cannabis dispensaries in Bath, Brewer, Gardiner, and Portland. WC has a long-standing relationship with the legalization movement. It has donated heavily to Medical Caregivers of Maine and has led the culture change from an industry perspective. It is estimated to control between 40% and 50% of the current medical market.
  2. Wholesale Business-to-Business Distribution
  3. Maine Organic Therapy: Operating out of Ellsworth, this organization may be the most direct competitor, as its business is closest in proximity to Pleasant Mountain farm. It specializes in customer service mastery and education. It, too, has donated financially to the recreational marijuana legalization movement. It owns approximately 5-7% of the medical market.
  4. Canuvo, Inc.: Canuvo was established in 2011 and is located in Biddeford. Canuvo cultivates, manufactures, and retails all of its own products. The owner is Glenn Patterson, who is also the vice president of the Maine Association of Dispensary Operators and a current board member for the National Cannabis Industry Association. Canuvo currently maintains a healthy 10% market share.
  5. Safe Alternatives of Maine: Safe Alternatives is a Maine nonprofit medicinal facility. It is located in Aroostook County. This is truly a small business. It possesses a small niche market in the Deep North of the state at about a 1-3% market share.
  6. Remedy Compassion Center (RCC): This business was created in 2010 in Auburn. It is the first state-licensed medical dispensary not only in Maine but also east of Colorado. As a nationally recognized brand name, RCC possesses a 15% market share.

External Competitive Factors: Little doubt exists that a new and developing market will bring other visitors from outside of the state. The largest potential newcomers are primarily located in Boston. These cannabis dispensaries are already established and are looking to expand their spheres of influence throughout Greater New England, as Massachusetts is under the same recreational regulation moratorium as Maine is. Although this threat is not great or immediate, groups such as Patriot Care are mobilizing for the opportunity.

Business Model

Our first client will grow within the city limits of Rockland. Our aim is to purchase 6-10 acres of untouched land. This land will be excavated, we will run power and water, and we will set up three greenhouses. Along with the three greenhouses, we will add a barn, dry room, and tractor. Following the construction of these buildings, a security fence will be set up around the entire farm.

Our Nexus system 420 Hybrid Greenhouse will house 12,000 square feet of growing space, including plants in vegetation and seedlings. The building will also include trimming, curing room, office, and storage.

Rockland is a large tourist attraction in the summer time. This was a big reason for choosing this city as our first farm. With a large influx of people in the area, the local dispensaries expect to have high traffic volume during the months of May to September. This means that product will move much faster and that farms will be able to sell their product at a faster rate.

The location of the farms are important when considering the rate of product that will be moved. We want our occupants to have the opportunity to be in an area that is beneficial for the product that will grow there.

We will also have a rental home located in the area. This will be rented out during the summer months at $2,000 a week. During weeks that the rental property is not being used, Robert and Austin will use it when they have business to attend to in the area. We are seeking to purchase a house at $160,000 and to put 1/3 down. This could bring an additional $50,000 a year.

This rental property will also serve as a vessel for reducing the costs of travel and for establishing residency in the state of Maine for both Austin and Robert.

Blue Cord Farms will have an office for the chief executive officer (CEO) and the director of marketing in the Dallas, Texas, area. Our farms will be located in Maine.

Use of proceeds

Our largest expenses will be: land, setting up greenhouses, excavating, and buildings. We estimate the upfront cost to be $500,000. The next-largest expense will be our payroll-related costs, which we expect to run $100,000.

proceeds.png

Updates

Robert Head
Robert Head7 months ago

Today we will visit with Ted Cruz's office to discuss taking cannabis off schedual one so that the VA can begin perscribing cannabis to it's veterans. 

We also discussed with Rockland Maine in regards to our storefront opening up soon. They explained to us when recreational sales become available, our storefront will have first option to expand from medical sales now, into recreational sales. 

Robert Head
Robert Head7 months ago

We have uploaded a document from a cannabis law frim describing what the actual impact of what Jeff Sessions satement on the 4th of January 2018 will be. 

Robert Head
Robert Head8 months ago

We have recently talked with Rockland City council in regards to allowing cannabis sales in the city of Rockland Maine. Due to the veto by Governor Le Page, the city has passed an ordinance that allows caregivers to open up a storefront. These store front must be seed to sale storefronts and allow only one caregiver per storefront.  

Given these most recent changes in local and state regulations. Blue Cord Farms, will develop in phases that are in conjunction to state and local law.

  • Phase I. Open a caregiver storefront with Pleasant Mountain Organics, the caregiver company.
    • PMO is the current caregiver that we have an agreement with to expand into recreational grow facilities.
    • Rockland Maine will only allow seed to sale storefronts. This means all plants must be grown on location of the store. Limit to 36 plants per storefront.
    • PMO will create a perpetual grow, that will allow for new product every two weeks.
    • Estimated revenue for this location is 33k every two weeks.
    • Total cost to open the store front will be approximately 60k.
    • This store front will be allowed by the municipality, to move to recreational sales once regulations are passed. Early 2019.
  • Phase II: Prep for Recreational sales (early 2019, 2-3 months of planning)
    • develop budget that is in line with regulations
    • bring on consultant to develop the expansion
  • Phase III: Apply for the recreational license
  • Phase IV: Expand to recreational
    • This will increase our grow operation and dispensary size.
    • Reinvest the money to open the larger farm w/greenhouse.
  • Phase V: Build larger greenhouse with 10,000 sqft canopy. (After two years of recreational sales, we will initiate this phase)
Robert Head
Robert Head9 months ago

I have had some questions in regards to our offering and I wanted to make sure it was cleared up.

Q: Do I get stock in the company?

A: Every unit you purchase will be turned into shares upon the sale of the company or going public.

 
Q:What happens if you do not reach the minimum $20,000?
A: The money will be returned to the investor.
 
Q: What is 3x the return mean?
A: This means that an investor that puts in $100 will be paid $300 starting in 2019. Payments are based on 10% of revenue generated that year.
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Q&A


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John Oneil
John Oneil - Issuer 2 months ago

We wish to give out loan to whom ever that is in need of a loan at interest rate of 3%, We give out loan from the minimum of 5,000.00 usd to the maximum 100 million dollars, pounds, euros, If interested, Contact us via email: johnoneil945@gmail.com
James Foster
James Foster - Investor9 months ago
What is the current annual revenue and will revenue split start immediately?
Robert Head
Robert Head - Issuer    
Currently we have not had any revenue. Licenses to sell recreational have not been available yet. To obtain that license, regulations must be passed by the state legislature first. This process we expect to happen in 2018. Our master grower is a caregiver for the state of Maine and has priority for a license. We begin to start paying out January of 2019 upon 10% of annual revenue.

9 months ago
Robert Head
Robert Head - Issuer    
Do I have a tangible asset like stock for ownership?

9 months ago
Robert Head
Robert Head - Issuer    
The investors will get a Certificate (PDF form) issued by a stock transfer agent that will state their rights in BlueCord

9 months ago
Saad Ghoraishi
Saad Ghoraishi - Investor   
How can I invest? I couldn’t find anywhere that allows me to invest.

2 months ago
John Oneil
John Oneil - Issuer    
We wish to give out loan to whom ever that is in need of a loan at interest rate of 3%, We give out loan from the minimum of 5,000.00 usd to the maximum 100 million dollars, pounds, euros, If interested, Contact us via email: johnoneil945@gmail.com

2 months ago
Bob D
Bob D - Investor8 months ago
May I increase my investment after time?
Robert Head
Robert Head - Issuer    
Once this investment window closes we not be accepting any investor money until the final regulations for recreational sales are implemented. At which time we will consult with our legal team to see how we will participate in that new market. That may open up another round of investor opportunities.

8 months ago
John Oneil
John Oneil - Issuer    
We wish to give out loan to whom ever that is in need of a loan at interest rate of 3%, We give out loan from the minimum of 5,000.00 usd to the maximum 100 million dollars, pounds, euros, If interested, Contact us via email: johnoneil945@gmail.com

2 months ago
Saad Ghoraishi
Saad Ghoraishi - Investor2 months ago
How can I invest? I can’t find anywhere that allows me to do so
Alan Jacobson
Alan Jacobson - Investor5 months ago
Hi, I'm interested, and it would be a pleasure to invest in the two of you given the service you provided our country. I just have two concerns. First, if I am not mistaken, these investments will be lost unless the Maine Legislature passes certain legislation. The governor would likely veto that legislation and I'm not sure there is a veto-proof majority that could overrule that. Please correct me if I'm wrong or if I'm missing something that should make me more optimistic. Second, your capital needs seem about right and unfortunately you may only raise around 5% of what you'll need during this raise. What gives you confidence that you can raise enough to get started and on a path toward break-even?
Robert Head
Robert Head - Issuer    
I'm sorry that I just saw this. You can email me at robert@bluecordfarms.com

5 months ago
Thomas Simmons
Thomas Simmons - Investor5 months ago
Is there a way on this platform to invest using funds in a self-directed IRA?
Alan Jacobson
Alan Jacobson - Investor5 months ago
Hi, I'm interested, and it would be a pleasure to invest in the two of you given the service you provided our country. I just have two concerns. First, if I am not mistaken, these investments will be lost unless the Maine Legislature passes certain legislation. The governor would likely veto that legislation and I'm not sure there is a veto-proof majority that could overrule that. Please correct me if I'm wrong or if I'm missing something that should make me more optimistic. Second, your capital needs seem about right and unfortunately you may only raise around 5% of what you'll need during this raise. What gives you confidence that you can raise enough to get started and on a path toward break-even?

Documents

Business Plan Development View Download
Start-up Valuation View Download
Greenhouse system with processing room View Download
Investor Pitch View Download
Form C and Offering Statement View Download
The impact of Jeff Sessions. More bark than bite View Download

Other Disclosures

Read the Form C filed with the SEC for other important disclosures, like financial statements, Directors, Officers, shareholders with more than 20% of voting rights, and more.
Irregular Use of Proceeds
The Company may make Irregular Use of Proceeds. Such Irregular Use of Proceeds, which may be in material amounts in excess of $10,000, may include by way of example and not limitation: Vendor payments and salary made to management, business associates, relatives, related parties and/or affiliates thereof; expenses labeled "Administration Expenses" that are not strictly for administrative purposes; expenses labeled "Travel and Entertainment"; and expenses that are for the purposes of intercompany debt or back payments.

Without limiting the above, the Company may elect to vary from the proposed use of funds as circumstances or assessments of circumstances following the closing change.
Special Note Regarding Forward-Looking Statements
This offering contains forward-looking statements within the meaning of the federal securities laws. We caution investors that any forward-looking statements presented in this offering, or which management may make orally or in writing from time to time, are based on the Company’s beliefs and assumptions made by, and information currently available to, the Company. When used, the words “anticipate,” “believe,” “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “would,” “result” and similar expressions, which do not relate solely to historical matters, are intended to identify forward-looking statements. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties and factors that are beyond the Company’s control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. While forward-looking statements reflect the Company’s good faith belief when made, they are not guarantees of future performance. The Company expressly disclaims any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this offering may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We undertake no obligation to revise or publically release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements.
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