Colordo Extraction Systems, LLC in Wheatridge CO

This company designs, manufactures, and sells their patented extraction, separation, evaporation, distillation, and isolation equipment which is used in the cannabis (marijuana and hemp) industry, biopharmaceuticals industry, and botanical extractions industry (essential oils like lavender for soap, etc).  However, their equipment can be used at R&D facilities, universities, agriculture, laboratories, etc. This company was worth $18M in early 2020 then COVID killed it by eliminating the trade shows where 100% of their revenues came from.  In 2019, they did 8.6M in revenue and 4.5M in earnings.  Most of these earnings came from the red-hot Cannabis industry because this was what most of the trade shows focused on which was the low hanging fruit to sell their equipment pre-Covid.

The owners were already successful before they started this company 10 years ago with one having a large family glass business and the other several other interests and properties.  In short, when Covid killed trade shows, they decided to temporarily focus on other things and revisit this once things returned to normal.  They never did and now they have 3 choices: get back in the saddle and market their equipment differently and to more than one industry, liquidate which might get them 300K to 400K, or find someone to buy or partner with them to pick up the pieces with what they know is the best equipment in the industry.  They have inventory, tools/equipment, patents, trademarks, a customer base, market position, data driven sector leading knowledge, and most importantly design build skills 2nd to none in the extraction/isolation manufacturing industry. 

Botanical extraction is the process of separating and removing soluble components from a plant using a solvent. The result is a concentrated extract that contains the desired compounds from the plant, without the solid plant material.  Botanical extracts can be used to create concentrated herbal products with targeted effects. They can also be used to isolate specific compounds from plants like hemp, such as CBD, CBG, and terpenes.  Some popular floral extracts include calendula, chamomile, rose, jasmine, lavender, and vanilla. These extracts can be used for aromatherapy or as ingredients in a variety of products.  This advanced technology equipment processes with maximum efficiency and consistency in product quality with cost reduction in mind.

A new product with potentially big pharmaceutical needs is “Kratom”.  Colorado lawmakers passed regulation on kratom. Effective July 1, 2024, the new law prohibits a person from selling or offering to sell a kratom product to anyone under 21.

Keep in mind that they did 8.6M in revenue with 4.5M in earnings in 2019 with only 5 employees who were mostly family, no salespeople, and only a 5,000 square foot location.   After 4 years without trade shows and no significant sales, they want to pursue option #3 above and find a partner to re-start the magic.  They want to partner or sell to a group that already has inhouse marketing preferably with experience and salespeople who have connections with the Biopharmaceutical, Essential Oils, and/or CBD/Kratom industries.  

There is nothing wrong with their proprietary equipment.  They need someone to counter their failures and grow the business like they know it will again, preferably, an expert marketing company to handle online sales, trade shows, distributors, vlogs, pod casts, etc.  This will include new marketing for their 43,500 LinkedIn followers with the ability to order their products online or schedule appointments to see in person demonstrations.  The owners will sell between 50% to 100% of the company which shows their confidence in their products and ability to create new ones.  They want to see their baby grow while they want focus on design build and have the new owner market their products and let them know how they may want the equipment changed. 

The sales price for 100% of the company is only 975K.  They will consider any offers that require less money up front and one or both keeping some ownership and potentially one of them(Quinton), staying employed (salary and bonus).  Keep in mind that this company had grown steadily while expanding their product lines, revenues, profitability, and market share UNTIL COVID happened. Details below especially in the data room where you will find several video interviews and a walkthrough of the business and its products.