June 2021
Vol 8 | Issue 595

Q&A with Grant Schuster of Accelerant Manufacturing

Co-Founder & CEO

Principal Series:

Accelerant was established to provide the legal Cannabis industry automation and related products with a focus on Production as a Service (PaaS) whereby the company is paid on a per unit basis. The Accelerant corporate structure can manage various types of partnerships to optimize for commercializing both original and licensing opportunities for equipment and product offerings. For example, Accelerant Holding owns Accelerant Manufacturing, a PaaS pre-roll machine(“PRO”) that can produce 2-3K joints per hour. The PRO provides inline production joint automation with superior speed, precision and quality.

Join us for a private Family Office Insights Webinar featuring Grant Schuster, CEO of Accelerant Manufacturing, who is taking a unique approach to solving the biggest production issues in the rapidly growing Cannabis industry. Prior to founding Accelerant, Grant led one of the largest manufacturing operations in Florida, growing 500% in 12 months.

June 29th, 2021 at 2:15pm-3:15pm EST
RSVP & Confirmation Required

Family Office Insights is a voluntary, “opt-in” collaborative peer-to-peer community of single family offices, qualified investors and institutional investors. Join the community here www.familyofficeinsights.com

What are the opportunities in the Cannabis space that Accelerant sees and seeks to capture? Why now?

The Cannabis market is ripe with opportunity as the industry as a whole is growing at CAGR of 20%+ and is expected to hit $41.6B in 2025. With cost of capital often in excess of 15%, companies seeking revenue and margin expansion need to automate in order to keep pace with the industry growth.

Accelerant sees a tremendous opportunity to participate alongside the industry with a Production-as-a-Service model to relieve the costs of automation for cannabis operators. Starting with Prerolled joints (“Preroll”), Accelerant has developed automated machinery to significantly reduce labor contribution to COGS.

Pre-Roll sales are outpacing cannabis industry growth at 47% and 144% YOY in 2020 and 2021 respectively.

The company will expand its PaaS business model to other product categories and packaging using a build, buy & partner strategy.

What differentiates Accelerant from other (similar) manufacturing solutions?

NoCapEx Production as a Service (PaaS) business model:
- Competitors machines cost 300 to 400k and cannabis businesses have a high cost of capital, therefore it takes majority of operators 7 to 10 years to payoff a competitors machine

Accelerant is aligned with its customers:
- Accelerant designs its equipment to be scalable and effective. As the company only makes money when its customers make money, Accelerant invests into the most precise and highest quality parts.
- The modular design of the equipment works for customers of all sizes
- Accelerant is incentivised to continuously monitor and improve performance for its customers.

What is the opportunity for Investors?

Reduced execution risk with cash flow positive forecasted at 11 machines - August 2021

Accelerant’s PaaS model compares well against SaaS companies LTV:CAC - Low customer churn rate with 4 year contract creates 83% margin on core offering.

Picks & Shovels business for Cannabis without 280E tax implications - Accelerant can deduct all traditional business expenses, thus improving its bottom line.

Grant Schuster of Accelerant Manufacturing

Grant, left the industrial spice industry in 2015 for the Cannabis industry. After realizing over $75MM of operational improvements, Grant moved to Florida to turn around the manufacturing operations of what would become the second largest manufacturer in the state. Grant took the operation from $3.5MM in monthly revenue, to producing over $15MM per month without increasing the 125 person headcount.
Contact Grant: grant@accelerantmanufacturing.com