​Poised and Ready for California Green Rush, Groundbreaking at CGTD’s 20,000 Sq. Ft. Cannabis Greenhouse Draws Near

Spotlight Companies  |

At the first of July, Nevada joined Colorado, Washington, Oregon and Alaska in making recreational marijuana legal and did so with a smoking start. Reports of lines out the door from open to close at dispensaries, possible supply shortages already and incredible amounts of revenue being generated for the state abound in the first week of legal sales. This is exactly the type of impact – only larger in scale – that Marshall Field, founder and CEO of California Green Tree Development (CGTD) is expecting when recreational cannabis becomes legal in California at the outset of 2018.

Given the tourism factor, experts expect Nevada to be a major player in the legal marijuana space, with Marijuana Business Daily forecasting at least $75 million in sales in 2017 and up to $550 million annually in the future. These estimates could be light considering Nevada’s 2.9 million residents, 40+ million annual visitors, “Sin City” reputation and the fact that legal marijuana sales in Colorado, a state with a population of 5.5 million, topped $1 billion last year.

Medical marijuana has been legal to California’s 40 million residents since 1996 and reportedly generate over $800 million in annual sales. What can happen across the liberal state in 2018 could set the industry on its ear with the magnitude of sales some are expecting.

“Just take a look what is happening in Nevada already,” Field told Equities.com. “I have no doubt in my mind that California will experience a steep imbalance between supply and demand for quite an extended time following legalization taking effect. California is implementing new standards of quality control for which many current growers will not be able to pass, further exacerbating a supply shortfall, which we intend to capitalize upon.”

California Green Tree from COPRO STUDIO on Vimeo.

Field, a successful real estate developer and investment banker, partnered with real estate mogul Rito Gutierrez to found California Green Tree less than one year ago. The two have leveraged their real estate and entrepreneurial backgrounds to move expeditiously forward on their business model to become a premier marijuana cultivator in California under the “Happy” brand.

To meet this goal, CGTD secured the land and requisite licenses to produce cannabis, in the meantime going straight to the nation’s premier cannabis greenhouse builder, Nexus Greenhouse Systems for their design and construction needs. Nexus has been in the greenhouse business for over 50 years, more recently emerging as the go-to firm in the marijuana space, constructing in excess of 300 cannabis indoor grow houses in Colorado alone.

Nexus brings the knowledge that breeds repeatable quality products at the highest efficiency, meaning that revenue and profits are maximized by superior designs.

The fully-permitted System 420 Hybrid greenhouse is designed specifically for California codes and weather and for capacity of planting 800 plants per week and harvesting 400 plants per week. Field says they are going to run a tight ship on expenses, spending up front to reduce energy costs from an original projection of about $50,000 monthly to $15,000 monthly and on automated systems that can be run by about 10 employees.

While the ground is being prepped for construction, management is finalizing details on growing a wide array of strains of organic (no chemical fertilizers, no pesticides, etc.) cannabis with varying degrees of tetrahydrocannabinol (THC), the constituent in marijuana responsible for the euphoric high. Banking on the fact that people consume marijuana for various reasons at various times, the Happy brand products will be categorized and clearly labeled per THC content so the user knows exactly what to expect (i.e. “Happy 10,” “Happy 20”). The company already has 28 different strains ready for planting.

Distribution is not a concern, as CGTD has established relationships with over 1,200 dispensaries across California. To that end, Field knows that they will have to quickly ramp-up production by constructing another facility, for which they have already acquired permits.

Field says groundbreaking at the first 20,000-square feet state-of-the-art facility in Coalinga, California is rapidly approaching, a true milestone for investors. To that point, the privately-held company is raising capital through a Regulation D 506(c) Private Placement Memorandum. Details of the qualifications to invest are provided on the company’s website, giving accredited investors an early shot to invest in the young company and its projections of an initial return on investment of 25%-35% with triple-digit potential in the longer term.

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