Part of funding portal member: truCrowd, Inc.
Mobile Menu

Squirrel Capital Investments Inc.

Green Haze Leasing we do the leg work so you can get to work!

Closed on 07/17/18

54% funded

min$10k

max$1070k

funding goal 

Reg CF

exemption used 

$1,150,000

pre money valuation 

$500.00

min investment 

$5,300

amount raised 

5

investors 

Security Type
SAFE REV
Simple Agreement for Future Equity:
70% Discounted Rate

Revenue Participation Rights:
3X: Return Multiple
42%: Revenue Split

Pitch

Who are we

We are a real estate and indoor cultivation equipment leasing company in Las Vegas Nevada. We will be purchasing commercial property and indoor cultivation equipment.The property will be upgraded and the equipment will be installed so that we have a turnkey cultivation facility. Which we will then lease to a cultivation company for a reasonable down payment and 40% of their monthly revenue.

 

 

Problem

In the Las Vegas area, we have a rapidly developing Cannabis industry. There are limited properties that are correctly Zoned by Clark County for Cannabis cultivation and Production. It is becoming more difficult to find these locations. And due to the rapidly rising cost of property in the Las Vegas area some operators are finding this is causing them to be underfunded and unable to successfully get their business started.

 

 

Solution

We want to use this money to buy a commercial building and convert it into a turnkey indoor cultivation facility. Most of the money will go to the purchase of the property and the necessary renovations and ensure the facility will meet all the state of Nevada and Clark County codes and regulations.

 

 

Achievement & Traction

The Company will use a direct sales approach and a variety of advertising channels to increase its exposure among prospective customers. Specific channels will include:  
Print media: The Company will place ads in local print publications and other industry websites (Leafly, weed maps, ect.) These advertisements will communicate key value propositions of the business.

 

The Company will benefit from strategic partnerships with other businesses, such as growers, dispensaries, and producers. These partnerships will be mutually beneficial and will help increase brand awareness in the target market for both the Company and its partners.

 

The Company will attend marijuana-centric conferences, summits, and trade shows throughout Nevada and other legalized states to increase brand awareness and establish valuable business partnerships.

 

 

 

Market

Green Haze Leasing will operate within the $4.6 billion Medical & Recreational Marijuana Growing industry, which has performed exceedingly well as the number of states to legalize marijuana in some capacity increases. 2016 saw more states legalize than ever before, bringing the total number of states with legalizing legislation up to 29 and the District of Columbia.

 

 

 

According to New Frontier Data, an estimated 31.0% of the U.S. population now live in states with newly expanded access to legal marijuana. Additionally, Gallup reports that an estimated 80.0% of Americans approve of legal access to medical marijuana, while 60.0% approve of full adult use legalization.

 

Advancements in the growing process of cannabis have allowed the Growing industry to further control the development of compounds in the plants and create specialty strains for specific uses, such as geared more towards the psychosomatic effects or medicinal effects. An aging population and increase in the prevalence of cancer and chronic illness have spurred growth in medical marijuana growing. 

 

In the next five years, revenue for the Growing industry is expected to continue to skyrocket, despite an uncertain future while the federal government still criminalizes marijuana.

 

Competition

We target Cannabis growers that do not have the funds or the business acumen to handle the acquisition and agreements with many vendors.  So, they will prefer to have one vendor (us) and to make one payment for all equipment, real estate, etc.

 

We are not aware of any players in our market that are providing the same services.There is no doubt they exist, but all are small players and so far there is no one to provide this services on a bigger scale.

 

If execute everything right, we might have some first mover advantage.

 

Business Model

We will be offering a turnkey facility for a reasonable down payment and 40% the monthly revenue. This fee is all-inclusive, so the cultivation company can make one easy payment to cover the property and all of the equipment. Which would normally be divided among multiple vendors.

 

 

Team

Byron and  Shannon Stepner own and operate the Company, drawing on all of their customer service experience.  While Ms. Shannon Stepner served as a Manager for  Target for 11 years. Both founders bring many skills that will benefit the Company and assist in its establishment. Byron Stepner also worked as a billing account manager at Balanced Healthcare receivables for 4.5 years. Also, we are currently in talks with a CPA to fill the CFO position.

 

We are currently in talks with a CPA for the CFO position and with the CEO of an established cultivation operator from California to advise us on the design and technical details of the facility.

 

Use of Funds

We want to use this money to buy a commercial building and convert it into a turnkey indoor cultivation facility. Most of the money will go to the purchase of the property and the necessary renovations and to ensure the facility will meet all the state of Nevada and Clark County codes and regulations.

 

 

Updates


Q&A


You must be logged in to be able to post a question.

Dave Denkhaus
Dave Denkhaus - Investor4 weeks ago
You don't currently have any properties or direct experience doing this yet? I didn't see anything about lease structure/recourse. I would be all for this, but the commercial real estate and insurance is nothing like residential. Even with commercial realtors/insurance brokers, most have no idea what they are doing in this space. You really need to bring someone with years of actual experience onboard (who owns real estate). I would suggest going to some local investor meetings to find someone with experience and money. Once you have a working facility more people would be willing to invest. You should structure this as REIT.
Grant Invinzor Abejar
Grant Invinzor Abejar - Issuer a month ago
Hi Byron,

Is there anyway I can communicate with you? either phone or email? Thanks
Paul Riss
Paul Riss - Investor4 months ago
How are banks acting in Nevada with regard to accepting deposits from growers? Do you anticipate that your tenants will pay their rent in cash, and will you be able to deposit large amounts of cash in your bank?

What kind of license do you need to rent to a grower and what license does the grower need?
Byron Stepner
Byron Stepner - Issuer    
Mr.Riss, as far as the banks go according this DEC.2017 article ( https://www.huffingtonpost.com/entry/why-its-getting-easier-for-marijuana-companies-to_us_5a28015de4b0cd6fb5ee8bb7 ) there are almost 400 banks and or Credit Unions in the U.S.A. that do regular business with cannabis companies. I assume there will be more by the end of this year especially since the federal government is becoming for lack of a better term "more excepting of the cannabis industry". I believe I have already answered the second part of your question in my response to your first comment. Feel free to reach out if you have any further questions

4 months ago
Lindsay Carroll
Lindsay Carroll - Investor   
That’s really interesting actually; I work in banking and have certification in money laundering (which unfortunately would be how this is viewed) and had not heard there was any new ruling on this. In reading the guidance it looks like banks would still be required to complete a suspicious activity report of sorts to their regulator.

My concern would be ending up on the fed’s radar through these filings. We live in wild times...

2 months ago
Byron Stepner
Byron Stepner - Issuer    
Lindsay, thank you for sharing your personal knowledge of the subject. I will most definitely research this. Although I don't understand how paying a portion of your monthly revenue in stead of a fixed monthly lease amount could be considered money laundering when every penny involved the transaction is so closely monitored by state and every financial transaction has to be reported to the penny. also the company leasing the property has to use seed to sale tracking software that generates highly detailed regular reports to the state every month.

2 months ago
Byron Stepner
Byron Stepner - Issuer    

“After some research, we figured out that for our business, the banks will not need to file a SAR (Suspicious Activity Report) because we are not involved directly in Cannabis. Being an equipment leasing company gives us that protection. It looks like the banks do file SARs with FInCEN (Financial Crimes Enforcement Network) when they work with a company that is working directly with the Cannabis, and it is not for money laundering or fraud, but it is because of the CSA (Control Substance Act).

 

Lindsey, your response to this would be highly appreciated.”


2 months ago
Paul Riss
Paul Riss - Investor4 months ago
Hey, great news for you and the marijuana growers this week, with this article that Trump will let the states regulate the industry. https://www.bloomberg.com/news/articles/2018-04-13/trump-to-give-states-latitude-on-legal-marijuana-senator-says

I have invested in cannabis operations in CO and WA, and like you, they do not own, grow or touch the weed, but provide ancillary services. I believe that is a great approach to take, especially when you are using federal regulations to raise money (Bravo!) Would you please give us a summary of the status of licensing in Nevada? Both for medical and recreational products. What about oil extraction, is that a different license? I imagine you could rent to an extraction operation too. Thanks.
Byron Stepner
Byron Stepner - Issuer    
Mr. Riss, Thank you for taking the time to review our investment opportunity im not sure I am the best person to answer these questions as our Business being ancillary does not need to hold either a cultivation or production( i.e. extraction, edibles and infused products) license. However I can tell you what I learned through my research into the industry here in NV, all cannabis licensing on the state level goes through nv.gov dept. of taxation ( https://tax.nv.gov/FAQs/Marijuana_License_Applications/ ). also recieved clarification on the issue through phone calls with the NV taxation department. License applications in Nevada are usually written by an attorny and that can be very costly. Cultivation license is required to Grow cannabis and you would need a production license to do extractions both require a $5K non refundable application fee. The cultivation license is $30K per yr. and production license is $10K per yr. In addition you would also need to aquire a use permitt from the county and or city depending on which jurisdiction you end up in. Thank you for the link to the article. I enjoyed reading it. I hope I was able to answer your questions to your satisfaction. feel free to reach out if you have any further questions.

4 months ago
Oscar De La Rosa
Oscar De La Rosa - Investor4 months ago
What happen if you guys do not get all the money? Will you guys give it back? And how long do I have to wait to see preofits after the campaign is closed? Thank you
Byron Stepner
Byron Stepner - Issuer    
Mr. De La Rosa, thank you for taking the time to review our offer. To answer your first 2 questions if we don't reach our minimum Target of $10K then all the money will be returned to the investors. As for your second question, With the security we are selling on or around 01/01/2019 we should start to see profits of which we will be putting aside 42% of our revenue that we will be paying pro rata to all the investors.

4 months ago

Documents

Business Plan Development View Download
Start-up Valuation View Download
Offering Statement View Download
Form C View Download
Reviewed Fiancials View Download
Offering Statement Updated 6 18 18 (via Form C/A) 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.
up

Back to top

Time until automatic logged out: : minutes