You can have the greatest idea in the world, but unless the right team and processes are in place to execute, even the best ideas will not succeed. Our team is our strongest asset. There are three managing members comprised of a CEO and two Chief Cultivation Officers. The CEO comes from a non-cannabis background having successfully started multiple companies, which have generated annual revenues in the millions. He specializes in marketing/branding in competitive spaces as well as creating efficient processes to optimize the cost of manufacturing.
The other two managing members are expert growers having run over 10,000 square feet of cultivation each in indoor, mixed light and outdoor settings. They have built a reputation over their 14 years of experience in NorCal as producing highly sought after products, which typically yield top dollar from the market. Their relationships have also produced 3 executed LOI's/distribution contracts to show demand for the crop they have yet to produce out of this operation.
All three managing members understand the importance of having flexibility in their vision and having the ability to pivot to meet the demands of the market. This is a crucial quality in the ever-evolving cannabis industry. Those that are not willing to re-evaluate their approach, methodology, and processes will be left behind when commoditization sets in. Please refer to the meet our team attachment in the supporting documents section for more granular information on the partners.
Leo has an extensive background in sales, business administration, and management. In early 2005, Leo had the challenge and opportunity of a lifetime presented to him — to take over his family’s business. Thus, he began a career in the beauty industry as owner of ZaZa Salon & Day Spa. Under his leadership, the business boasted 13 consecutive years of revenue and profitability growth ranging from 10 -35% per annum. This growth took the business from 15 fulltime employees to over 50 fulltime employees in 2018. Leo was also able to convince his conservative suburb to issue the Salon a Liquor License and became one of the first salons to serve alcoholic beverages in Illinois. Concurrently while running his salon business, Leo started and successfully operated a Hair Extensions business and an E-Commerce business 2012-2017 grossing over $1.5M annually. Leo sold ZaZa Salon & Day Spa to fully commit to Crest Meridian. He is now in the process of relocating his wife and three children (and three dogs) to Sacramento California where he will apply the same business experience and acumen to running the cultivation enterprise with his Crest Meridian partners.
Elia has experience in many different cultivation techniques, including full sun outdoor, greenhouse, mixed light greenhouse, and indoor cultivation. Elia has an insatiable appetite for learning, constantly trying to further his knowledge and skill set to produce the best product possible. Elia is an advocate for indoor growing, which he believes is the future of the high-end cannabis product industry. Through indoor growing, Elia is able to maintain precise atmospheric controls, carefully manipulating the entire lifecycle of the plant — from seed/clone through harvest. This allows Elia to produce the most high-quality A and A+ boutique flowers that picky and educated California cannabis consumers desire. Elia has managed over 7,000 sq. ft. of canopy in Nevada County, and collectively with Colin Sander, over 10,000 sf. through numerous complete growing cycles. Elia currently maintains 3 full-time managerial employees as well as 5 -10 part-time trimmers and harvesters. Over the last 13 years, Elia has developed numerous industry-specific relationships related to other fields in the cannabis industry including but not limited to distributors, retailers, extraction experts, pest experts, HVAC experts and more.
Colin has been cultivating cannabis as a licensed grower since 2002 (16 years). He has developed and owns several successful collective cannabis cultivation projects. He started by growing indoors and broadened his knowledge and experience to include greenhouse and outdoor cultivation as well. He currently owns one property with multiple greenhouses located on it with the largest being an 80x20 ft canopy (1,600 sf.). He rents another 30-acre property also with multiple greenhouses. Colin oversees the Crest Meridian R&D property which includes 800 sf of flowering canopy, with 4.5-5 harvesting cycles annually, as well as 2 nurseries. Colin currently manages and oversees a total of at least 8,000 sf of cannabis cultivation throughout the year. Colin’s medical cannabis and related products have been sold in licensed medical dispensaries and by licensed delivery services in the California Medical Marijuana Market. He’s looking forward to entering the recreational market as Crest Meridian, better enabling the company to showcase its exceptional products and boutique flowers. Colin is a graduate of Southern Illinois University, he and his wife have an energetic and engaging three-year-old child.
The market in California for a top-shelf indoor flower producer is arguably as good as anywhere else in the nation. This assumption is based on a rich culture of flower connoisseurs embedded in Californians for two decades via a recreational market masked as a medical one. Though flower has lost market share to other segments such as concentrates, edibles, etc., it still maintains significant demand in dispensaries. What has fallen off in the segment is outdoor and greenhouse flower which has mostly been turned into extractions. The precedent is seen in other markets like Colorado where prices have been plummeting for years on everything except top shelf indoor flower, which has not only stabilized but has gone up in the last year. The belief here is that California will follow suit. https://reports.cannabisbenchmarks.com/
Now, let’s assume the $2,200-$2,500/lb in the current indoor flower market does not last and commoditization drives prices down; that is when the cream will rise to the top. The competition will become real, just like in the rest of the industries of the world, and operators will need to know how to run an efficient business, which can sustain a price drop as low as $1,000/lb or lower. Crest Meridian is projecting sub $500/lb cost of production out the door. Moreover, the best part is that if there should be a glut in the market or other unforeseen challenges with demand, then Crest surrenders the product to the extraction side of their facility and creates products, which are most in-demand through manufacturing. In the meantime, the manufacturing side will start processing white label flower purchased from outdoor operations as well as the trim and littles from Crest's cultivation.
Crest Meridian is proud to have three distribution contracts/LOI's with local distributors to show interest in the quality of product the team has the reputation of producing. As well, the company is building its brand well in advance of coming to market on Instagram with over 2,000 followers already and growing fast @crestmeridian. https://www.instagram.com/crestmeridian/
Crest Meridian owns a 28,000sq. ft facility in Sacramento. This will house 22,000sq. ft for cultivation canopy, 2,300sq. ft for manufacturing/processing/packaging space and a self-distribution operation. Crest will implement a vertical 2-tier LED canopy which allows for the efficiency in the footprint of the layout to have space for all three facets.
The partnership for Crest consists of 2 expert growers (CCO's) with 14 years of cultivation experience each (indoor, full season and mixed light) and a CEO who brings 15 years of successful business experience outside of the cannabis space. The Company has raised $4.4mm already and needs another $4mm in this Series A round to complete its build-out, purchase equipment and maintain an operating fund as the company positions to produce revenue.
-Crest Meridian coming to market 2020-