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FlowerBee Group Inc.

INVEST

62dd20hh

Time left to invest

38% funded (of minimum target)

min$10k

max$1070k

funding goal 

$10k - $1070k

funding goal 

Regulation CF

exemption used 

Regulation CF

exemption used 

$2,339,270

pre money valuation 

$300.00

min investment 

$3,800

amount committed 

4

investors 


Security Type
Convertible Notes
$100 per unit
16% interest

Pitch

Who are we

Our investments are designed to preserve and grow shareholders’ capital and provide financial security with a focus on long-term sustainability coupled with unprecedented possibility.


FlowerBee Group, Inc. is an American firm headquartered in Southfield, Michigan, United States. FlowerBee invests in high growth blockchain assets and combines them with long-term real estate assets holdings to create alternative financing and liquidity options for operators in the cannabis space. The Company’s assets include real estate, software, blockchain, and financial services.

Problem

While the cannabis industry is expected to soar to more than $50 billion in just five years, prices have fallen anywhere from 25% on the retail side to nearly 50% for wholesalers. This decline has put a strain on profit margins despite tremendous overall revenue growth.

 

These trends are likely to continue moving forward as a growing number of producers enter the market. The increase in supply will be partially offset from higher demand stemming from the myriad of legalization’s initiatives across North America. Producers of raw cannabis are expected to see the greatest competition given the potential commoditization of the product, while developers of extracts could enjoy some protection given the complexity and proprietary formulations.

 

PLANT TOUCHING COMPANIES SUBJECT TO HIGH RISK

Plant touching companies still face a high degree of risk as cannabis remains a Schedule 1 illegal drug. While Michigan has legalized the growth and use of cannabis, plant-touching companies must adhere to strict guidelines to meet compliance requirements. Beyond state and federal compliance risk generally, the challenges are compounded by additional unique issues related to their inability to access banking, financing, and funding generally. Moreover, as a result of the deemed illegality of cannabis companies at a federal level, plant-touching companies are unable to avail themselves of federal protections, such as bankruptcy, should their businesses fail.

 

Solution

FlowerBee Group solves this risky problem realized by growers while remaining exempt from the legislative climate by focusing solely on the tangible and intangible assets necessary for cannabis companies to operate. The entire industry is comprised of several essential assets - real estate, equipment, manufacturing, and financing. We know what can be tested can be trusted. The primary underlying assets we’ve engaged in is landing banking, lease back, and asset appreciation.

 

We have followed the tried and true model of land leases, land banking, and asset appreciation. We create value for investors and shareholders through above-market lease rates of real and personal property to agricultural cannabis/hemp/CBD farms, grow facilities, dispensaries and transportation companies. Value is further realized through the appreciation of real property as measured by both sales’ comparison and income capitalization methodologies. Depreciation of assets also provides additional tax benefits for non-real estate related assets.

 

FlowerBee Group, Inc. has entered into contingent acquisition agreements for a cannabis zoned commercial property. This operations (Detroit) is in prime industrial location. The Woodrow Wilson canopy operation is housed in a 40,000 square foot industrial building. Through our acquisition of the underlying real estate, we realize immediate profitability from above-average lease rates, long-term tenants, and stability of revenue as a result of the tenant operating its grow operation under the long-standing Michigan Medical Marijuana Facilities Licensing Act. Combined net leasing revenue from the businesses operating in the facilities exceeds $350,000.00 per annum. With modest property improvements the market value of each property has substantial room for appreciation. Again, our focus is profiting from the exponential growth in the cannabis sector while remaining non-plant touching.

 

 

FlowerBee consultants will aid our tenant in improving profitability. Crop production requires the proper tools, environment, and conditions for optimum results. The consulting strategy will include licensing and/or financing the FlowerBee proprietary growth and nutrition system, which has been tested and produced favorable results. Benefits include reduced harvest cycles and increased flower growth, while maintaining the highest standard for care in the process.

 

Achievement & Traction

The FlowerBee approach to creating value focuses on unlocking the potential that others are unable to see. Our disciplined investment focus is always on companies that provide mission-critical components to the cannabis industry – blockchain software, data analytics, hard assets and alternative banking solutions designed to create opportunities for growth and improvement in cannabis operations. We partner with world-class advisory teams across our managed assets. Our goal is to help cannabis companies avoid or dampen the regulatory, liquidity, and operational inefficiencies and challenges that lead to little or no growth. Our dedicated team of operational consultants will generate lasting value through the implementation of best practices across our investments.

 

FlowerBee brings a deep-domain process, focus, and discipline to the value creation process. We have created a scalable model by developing internal business processes that help improve investment efficiency, profitability, and enhanced growth opportunities. Best practices are created by and for FlowerBee’s management teams and touch on all aspects of growth and operational strategies. Our management team consists of proven business leaders that work collaboratively to capture, share, and deploy their collective experience across the FlowerBee assets.

 

We believe the market opportunity for investing in value-added complementary cannabis assets is strong and will continue to grow as new entrants to the market attempt to enter the cannabis space through more traditional means. The pursuit of operational excellence demonstrated execution capability, and application of patient capital is FlowerBee’s winning combination for long-term success.

 

Market

In the third quarter, the U.S. industrial market maintained the momentum seen in the first half of 2018. Annual rental growth accelerated to 6.3 percent, the highest annual growth rate so far in 2018. The U.S. vacancy remained stable for the third-consecutive quarter, at 4.8 percent and continues to be at an all-time historic low.

 

Class A market remains tight and is primarily driving rental growth. The U.S. industrial rents for Q3 reported a strong jump, moving closer to the $6.00-mark, at $5.74 per square foot. As top logistics markets continue to operate at a sub–3.0 percent vacancy rate, we expect continued competition for quality space to add pressure on rents through 2018. Comparing the top 10 most expensive logistics markets, West Coast cities make up 8 out of the 10 most expensive markets in the country.

 

According to CBRE’s U.S. Real Estate Market Outlook 2019 report released December 5th, the U.S. industrial and logistics sector, which was chosen as the preferred asset class for the second year in a row by global institutional investors, retained strong market fundamentals in 2018. Net absorption exceeded completions and drove the vacancy rate down to a historic low of 4.3% in Q3 2018.

 

This supply/demand dynamic creates a significant opportunity for owners of industrial facilities, particularly those focused on niche categories, as options are limited for tenants requiring specialized buildings. We will continue to purchase specialized industrial properties that are mission-critical to the medical-use cannabis industry.

Regulated Use of Medical Cannabis

The regulated medical-use cannabis industry is a rapidly growing industry that we believe presents a unique real estate investment opportunity under present market conditions. In the United States, the development and growth of the industry has generally been driven by state law and regulation, and accordingly, the market varies on a state-by-state basis. State laws that legalize and regulate medical- use cannabis allow patients to consume cannabis for medicinal reasons with a doctor’s recommendation subject to various requirements and limitations. 

 

  • Strong movement towards entire US adoption with anti-marijuana Attorney General Jeff Sessions fired.
  • Members of congress are lining up to introduce more bills to further adoption at a federal level
  • Many state governments view legalization as a way to create more jobs and strengthen their economies

 

Competition

In Michigan, competition has primarily been in the cultivation, transportation, and dispensary segments, although the large plant and non-plant touching companies are focusing on strategic acquisitions. To date, we have not found any companies in Michigan that share a model similar to ours, especially given our real estate concentration.

 

Furthermore, we see competition with the growing urban locations reduced by the barrier to entry. It's difficult to find a large enough urban commercial location that can be zoned for cannabis growth operations. The facility has to be retrofitted to meet higher electrical standards at a huge cost. Environmental controls and other needed infrastructure to support the growth operation are extremely expensive and expected by a leasing client as existent of to be included in tenant improvements (sunken cost). The operating cost to the tenant is much higher, and cannabis operations are penalized with high energy peak rates that diminish profit.

 

Business Model

Identify, Improve, and Sustain

 

Our business model is simple, yet powerful!

 

Identify: Value-added opportunities can only be seen by those who have an operational eye for inefficiencies. FlowerBee’s executive team understands what to look for in an asset, company, or industry to determine its gaps and the best way to fill those gaps.

 

Improve: FlowerBee’s unrivaled expertise in real estate, supply-chain, and blockchain-as-a- service (BaaS) positions us to integrate applications for the cannabis industry that result in growth for cannabis companies. We ensure that our target company can maximize the expertise of our network to achieve operational excellence, sustainable growth, and financial returns. Moreover, it allows us to ensure the integrity of the investment through a secure platform with real-time data.

 

Sustain: With dynamic market changes, FlowerBee navigates economic shifts by staying close to policy makers, economist insights, and the myriad of political factors that drives local and global economies. For more than two decades FlowerBee’s executive team weathered countless downturns, crashes, and destabilizations. We have the experience to anticipate and charter though such conditions.

 

Real Estate

FlowerBee Group specializes in acquisition and leasing of land that support the cannabis, hemp, and CBD industry. We build tangible and intangible value through hard assets (real estate & equipment) and advance technologies (blockchain).

 

Team
Jonathan Macri 

Chief Executive Officer

Jono is responsible for setting the overall direction, eco-system development, and investment strategy. Mr. Macri spearheads sourcing efforts for unique opportunities, strategic partnerships, and value-added opportunities. Jono has more than 13 years in start-ups, Global Business Development, M&A, and Private Equity. Prior to founding FlowerBee, Jono was the co-founder, Chairman, and President of Pacific Coast Capital, an early investor in blockchain technologies, real estate and commodities.

 

 

Use of Funds

Updates


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Documents

Start-up Valuation View Download
Offering Statement 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.
Use of Proceeds
The allocation of the use of proceeds among the categories of anticipated expenditures represents management’s best estimates based on the current status of the Company’s proposed operations, plans, investment objectives, capital requirements, and financial conditions. Future events, including changes in economic or competitive conditions of our business plan or the completion of less than the total Offering, may cause the Company to modify the above-described allocation of proceeds. The Company’s use of proceeds may vary significantly in the event any of the Company’s assumptions prove inaccurate. We will retain broad discretion in the allocation of the net proceeds from this Offering, reserve the right to change the allocation of net proceeds from the Offering as unanticipated events or opportunities arise and could utilize the proceeds in ways that do not necessarily improve our results of operations or enhance the value of our Common Stock. Additionally, the Company may from time to time need to raise more capital to address future needs that we may not have anticipated as of the date of this Offering Circular.
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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