Adam Denmark Cohen, Co-Founder and Managing Director of MJardin, a turnkey cultivation management service provider, spends a lot of time on planes these days. Most notably, he spends this time traveling to Nevada, where MJardin has focused resources to prepare for adult-use legalization. While Colorado is his legal home, the married father of two has his heart in Florida, where he launched his professional career in law and private equity. It is also where his family resides. He and his family cannot wait for the day that the eastern seaboard states (specifically Florida) transition to full-scale medical marijuana markets so he can spend more productive time closer to home.
MJardin is headquartered in Denver, Colorado. Adam and his partners, Co-Founders James Lowe (cultivation expertise)
and John Fritzel (retail expertise), started the company in Denver as vertical integration was taking place. While a majority of their more than 35 client portfolio are based in Colorado and Nevada, the footprint of clients that utilize their turnkey cultivation management services can be found in 10 states with more on the way. Their services encompass everything from licensing support to facility design and ramp-up to the day-to-day facility management. The company has set a goal of having 100 operating facilities under management over the next 3 to 5 years.
Currently, MJardin has over 500,000 square feet of grow space under management and has produced over 125,000 lbs. of flower for its clients. They have 250 employees and expect that number to grow 300 or more by the end of 2016. Looking at the legal markets they don’t currently operate in (AZ, CT, Il, NJ, NM, NY, OR and WA), and the literal size of the legal California market that will be licensing during that time frame, it’s not hard to imagine their client roster tripling.
Their pitch is a compelling one. The website states, “Our mission is to provide long-term marijuana cultivation solutions that increase yields, decrease costs, and in-turn add profits to our clients’ bottom line. MJardin is able to assist with cannabis cultivation in all legal markets including CBD-only, medical, and recreational/adult-use.”
When the three partners set up the company back in 2012-2013, they took a step back and looked at the development of the Cannabis Industry to determine a few key drivers that would play a significant role in the organization they wanted to form.
- They realized that varied state ownership requirements represented a costly and limiting barrier of entry if they wanted to take advantage of the national growth potential for the industry.
- They also realized that many states would restrict the number licenses issued. That would drive a need for bigger facilities and more capital, something that encouraged a professional service model versus direct licensure and investment.
- MJardin recognized the time lag between pre-licensure discussion and finished licensed production. This could take upwards of 3-5 plus years and would make it difficult to achieve the cash flow necessary to build a national company.
The executives decided on an operating partner and service provider model, where they wouldn’t take an equity position. Instead, they would provide services for a fee. They could be highly engaged with some clients, and others would require patience and a long-term commitment as legalization moved from one phase to the next (like Florida). It makes sense that they not only built their business and intellectual property in Colorado, but also used their success to deal with legal states that offered the best opportunities for their model.
High on the MJardin resource allocation list is Colorado’s neighbor, Arizona, where an Adult-Use ballot initiative in November could open up numerous opportunities. Similarly, but potentially even more lucrative, is Nevada. The market is considered to be critical to operate in and capitalize on the out-of-state demand that visitors bring to Sin City and its sister Reno. The promise of what California’s medical regulatory and the Adult-Use ballot initiatives represent seem to be making the MJardin phones ring more often these days.
To deal with their current and future growth, MJardin has added to its management team. The trio additions include Christian Monson as General Counsel, Shon Williams as Director of Business Development, and most recently Joe Bagan as COO.
In the cultivation managed services arena, there appears to be room for multiple players to grow. Adam mentioned fellow 2016 CBE Ancillary Business 100 members and companies he respects like Medicine Man Technologies and Denver Relief Consulting (also a member of CBE’s 2015 list of the Ten Most Important Companies in the Cannabis Industry). He believes, however, that the portfolio of services and products that MJardin brings to the table is hard to match.
MJardin should feel pretty good about its position in the marketplace today. They ranked as number 10 on this year’s CBE AB 100 list, and we believe they will move up that list as legalization initiatives advance and their invested markets begin to produce. Stay tuned sports fans!
Company Name: MJardin
Year Founded: 2013
Ownership structure/operating entities: Operating Company with multiple state subsidiaries
Management Team: Adam Cohen, Co-Founder, Managing Director; James Lowe, Co-Founder and President of Cultivation at MJardin; John Fritzel, Co-Founder, Managing Director
Headquarters: Denver, CO
Industry Segment/Category: Cultivation Management
Current Markets/States Served: CA, CO, FL, HI, MA, MD, MO, NV, PA, VT
Number of Clients: 35 plus
Current Number of employees: 250 currently, expect to be at 300 by year-end
Market Strategy/Goal: Build brand awareness and extend state and international footprint
2015 Revenues: Slotted in a range of $15-$25 Million in 2016 CBE AB 100
2016 Projected Revenues: NA
Expansion Plans: All US states and internationally
Financing strategy: Privately held