Asset ClassDigital Security (STO) & Canna Convertible Note
Value of Investment$3,500,000
TPZ Ventures operates its state-of- the-art 22,000 square foot cultivation and manufacturing facility on nearly 2 acres. Greenhouse production will allow for more than a doubling of production capacity on-site. Duplication of facility infrastructure can easily be achieved at several known sites with the same structure and layout. This will allow for simple expansion to meet recreational market demand, expected in the next four years, and development of the international market.
The Tropizen Canovanas facility (as shown in the floor plan in the InPortal deal room) has several segregated grow rooms to reduce the risk to the overall crop population, permitting crop harvests without shocking neighboring plants. After a harvest the entire room can then be sanitized before starting new crops. The facility is equipped with a variety of environmental and contamination control systems. Growing high quality marijuana is more than a science, at Tropizen it is an art.
Integrated with the cultivation operation at the Canovanas facility is the manufacturing plant. Tropizen's first oil production started in July 2018 using a CO2 extraction process to provide feed stock for a variety of products for dispensary shelves. The facility has a commercial kitchen with the capability to test products on site, which is key for quality control. Apart from manufacturing products for its own Encanna brand, Tropizen is providing manufacturing to third parties, and has recently entered into a contract with Puerto Rico based DaMa Pharmaceutical.
Current facilities include best in class HVAC and environmental controls, full power generation back-up and a 7,500-gallon water reservoir. Plans are progressing to install a “micro grid” to include LPG, solar and smart battery technology that will further reduce cost and provide multiple layers of operational resource redundancy and efficiency. These facility upgrades would be achieved with little, or no, capital costs as part of a third- party funded PPA arrangement that may also include funding of lighting and HVAC expenses associated with growth to full facility production capacity. This could substantially increase return on capital for investors.