13095 Bottle Rock Rd
Cobb, CA 95426
LEASE FOR 3 ACRES OF CANNABIS CULTIVATION · Land For Sale · 81.30 AC

The first section of this email is an investment proposal for a partner, for an indoor cannabis cultivation business. The second section of this email is an investment proposal for a partner, for an outdoor cannabis cultivation business. We are looking for a partner for a cannabis cultivation business (Proposal #1) Overview Bottle Rock Herbal Medicine, LLC is seeking a partner for the development of 88,000 square feet of cannabis cultivation, in greenhouses, in Lake County, California, for next seven years. The company may continue its operations for seven years thereafter upon further agreement of the parties. Bottle Rock Herbal Medicine, LLC, intends to develop, on multiple, nearly adjacent parcels of land, 88,000 square feet of greenhouse cannabis, producing an annual recurring net income of $21,096,194.00 after the first two years of start-up costs. Please see attached financial projections. The cultivation of cannabis is currently, for example, a much better agricultural investment, producing a much larger gross revenue, than that produced by one acre of Cabernet grapes. In 2019, the average gross revenue in one acre of Cabernet grapes in Napa Valley was $23,192.00. The per-acre annual gross revenue in one acre of greenhouse cannabis that same year was $10,892,904.00 Lake County cannabis major use permits are valid for 10 years. At a time when this industry remains small, but growing, investment in its evolving and expansive future is a commercial business opportunity that offers a unique advantage to our investors. What is required to obtain a cultivation permit in Lake County, California Lake County commercial cannabis cultivation regulations (ordinance No. 3084. 05/21/2019) allow property owners the ability to grow one acre outside or 22,000 square feet inside of cannabis for every 20 acres. Lake County also requires a home on each site where the cannabis is grown. Both the larger ranch and smaller ranch contain residences that comply with the Lake County requirement, and both ranches qualify for cultivation permits. Lake County offers an early activation permit process for growing cannabis. Bottle Rock Herbal Medicine, LLC, will be concluding the major use permitting process to grow cannabis on the property within the next six months. Bottle Rock Herbal Medicine, LLC, as the applicant for the Lake County permit process, has already completed the county requirements for the larger ranch. This effort included a pre-application conference; an archaeological review; a biological review; a water board discharge permit, and the required fish and game paperwork. Bottle Rock Herbal Medicine, LLC, et al. will build one 22,000 square foot greenhouse by the fall of 2020. Every 22,000 square feet of greenhouse should yield 6,600 pounds of cannabis flower per year. At a wholesale price of $1,400.00 per pound, this provides an exciting investment opportunity. (See websites listed below for documentation.) Project description: Bottle Rock Herbal Medicine, LLC Bottle Rock Herbal Medicine, LLC, is geared to produce premium organic, highly potent cannabis flower for the state-licensed cannabis marketplace. Structure Bottle Rock Herbal Medicine, LLC, will hire Charles Ewing to oversee the day-to-day operations of the cannabis cultivation business. Our horticultural expert, Glen Bauer, has 25 years of experience in the horticultural field. The crop management company that will be retained to undertake the preparation, maintenance, harvesting, and curing of the cannabis has 50 combined years of cannabis cultivation experience. Return There are two ways for a partner to be a part of this cannabis business. One option would be for one partner to invest 50%; alternatively, two unrelated partners could invest 25% each. Option one: 50% interest A single partner would fund the development of the commercial cannabis farm, as well as investing an initial $1,550,000.00, in exchange for a 50% interest in the Bottle Rock Herbal Medicine, LLC, business by partnering with our business on three parcels of land in Lake County, California, for 7 years, with an option to continue the partnership for another 7 years. For the first year, the partner should receive all his or her initial investment capital back. There will be an additional cost to the partner of $1,904,172.00 in the first year to develop the cultivation facility and to grow three crops of cannabis in one 22,000 square feet greenhouse. The first-year net revenue is projected to be $3,015,522.00 ($4,565,522.00 - $1,550,000.00). The partner will receive 75% of the net income until all his or her initial investment capital is recouped. In the second year, it is projected that the partner should recoup all his or her capital investment back if he or she chooses to expand. If the partner chooses to expand cultivation space, there will be an additional cost of $5,712,516.00 in the second year to develop an additional 66,000 square feet of greenhouse, the cannabis cultivation of three crops in those greenhouses, plus fencing, professional services, labor, insurance, permits, equipment, and power. The net revenue for an expanded greenhouse network is projected to be $18,975,334.00. The partner will receive 75% of the net income until all his or her initial investment capital is recouped. By the third year, no further development will be needed, just yearly recurring production costs, which will be equally shared by the partners. Third-year net revenue is projected to be $21,115,972.00, which will be shared as per partnership interest. (Please see financial projections, below for 22,000 square feet of greenhouse.) The business plan calls for the development of one 22,000 square foot mixed light greenhouse in the first year, expanding the year thereafter by an additional 66,000 square feet of greenhouse area until 88,000 square feet is under cultivation. The partner will also fund the development of the greenhouses. In return for his or her investment, the partner will receive an ownership interest comprised of a 50% interest in the business and development of 88,000 square feet of greenhouse cannabis production for 7 years, plus an option for an additional 7 years. For the first two years, the partner will receive 75% of the net income in exchange for funding the start-up costs for the business. Option two: Minority Interests Should partners prefer a minority interest, we can negotiate alternative percentage arrangements. Property Project location: Three properties located on Bottle Rock Road, Cobb Mountain, California. These pristine properties contain 83.8 acres of meadows, hills, creeks, and ponds. The smaller ranch consists of 22 acres and has a residence on the property, a statutory requirement for a growing permit. This property also features a pond, Carter Creek, and several small wells and is eligible for a 22,000 square foot greenhou