Small and well-established cannabis manufacturers alike were hit hard when the 2018 regulations passed. Cannabis product creators throughout the state have been left scrambling to find a way to stay in business, which now requires new licenses, significant capital, and the use of manufacturing facility in an approved cannabis zone. For many manufacturers, this felt like “game over.” The effects of having cannabis regulators in the state who don’t fully understand the industry are showing. It is estimated that 80% of manufacturers are out of business or producing non-THC products to stay afloat.
Based in San Diego, Elevated Labs, hopes to create a new streamlined legal path for cannabis manufacturers who want to continue making THC- infused products. Elevated Labs is a shared-use manufacturing space and incubator, set to open in the fall of 2020. Their concept is a “one-stop shop” for manufacturing, compliance, branding, packaging, distribution and marketing. Their team is comprised of successful entrepreneurs; a Green Flower Certified cultivator, a franchise growth expert, a successful restaurateur, a brand marketing strategist and expert visual artists. The Elevated Labs facility will be home to several cannabis brands using a Type-S license in the state of California.
Brent Harrison, Elevated Labs Managing Partner said, “when the regulations came into place in California, it felt
soul-crushing for many small business owners, us included, as we had spent a year doing R & D for our THC product line. But we saw an opportunity to help other companies like ours and decided to channel our frustration into a solution for the industry. We had a vision for companies coming together to share best practices, share the costs of real estate, equipment and raw materials, while at the same time building a community to foster growth for several brands.” The co-working model has spread throughout Silicon Valley, and in large cities with high real estate costs. It makes sense to bring this model to the cannabis industry and may prove to be necessary as regulatory and market forces have made the cost of business unattainable for most.
Elevated Labs is currently accepting applicants to share space in their first facility. If you are interested in partnering with them or learn more, visit them online