Updated: Jul 27, 2020
The medical and recreational cannabis cultivation market has seen an increase in demand. Like all things in demand, pricing goes up which is expected. No one foresaw the increase in the OPCL market. Prices have gone from $65,000 in early March to a July quote of $300,000 and it wont get any less expensive in the near future.
If You Find an Inexpensive OPC License You Should Close Immediately
"Good things come to those that wait," is the saying but not in the Cannabis Industry. Once you make an offer you may find yourself in a bidding war on price and when you can close, which is often a deciding factor. Your first instinct is to wait till the prices come down and most often the trend is that they go up. If you are going to submit an LOI, make it binding and include a no shop clause. The best thing to do is have your Attorney draw up an Asset Sales Contract.
Do the Prices Justify The Investment
This is the major question that Buyers and Investors of the Buyers ask. On our website we have a 5000sqft operational grow that has two Denver medical and recreational licenses. The sale price is $550,000, that deal is worth the investment. We also have a 4800 sqft Grow that is not operational that you could grow at but you need an OPCL to move there. The question: is it worth it to pay for a $300K license to move to that space to grow. Most people have to rethink their investment strategy if the value isn't there.
In an Industry that has gone from illegal to essential in very short time its bound to get a lot of attention from investors. If you have one for sale please give us a call, we have plenty of clients looking to purchase, in all Colorado markets. We have a request from a buyer who offered to pay up to $400,000 for one. Please give us a call if you have one.