Category: Manufacturing

VALLEY VENTURES COMPANY RAISES $6M IN NEW FUNDING

Published On March 11, 2020 – 12:54 PM
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A start-up company with connections to Fresno State just received heavy investment to aid in its work of increasing access to fresh water at a lower cost.

Valley Ventures, an accelerator program of the Water, Energy, and Technology Center (WET Center) at Fresno State, helped raise $6 million in new funding for Membrion Inc., a Seattle company that creates membranes out of silica gel materials to allow for a higher-performing desalination process that can purify pharmaceuticals, wastewater and other types of liquids.

With the new funding, Membrion will be moving its headquarters to Interbay, Washington.

“With this funding, we’re thrilled to move from the lab commercial production, develop a new manufacturing facility and ramp up production for customers,” said Greg Newbloom, CEO of Membrion.

The investors providing the $6 million are from outside the area.

The company completed the Valley Ventures Accelerator program in late 2019 and since then, Membrion has streamlined efforts on focusing and perfecting the “electrodialysis reversal” desalination process.

Newbloom said the company’s membranes are lowering the costs of membrane filtration by 30 percent.

“We are grateful for the help we received while being in the Valley Ventures Accelerator program,” said Newbloom. “The information and assistance we gained throughout the program, as well as the support given by the WET Center even after, allowed us to not only streamline this technology, but grow our company as a whole.”

https://thebusinessjournal.com/valley-ventures-company-raises-6m-in-new-funding/?utm_source=Daily+Update&utm_campaign=7345966575-EMAIL_CAMPAIGN_2020_03_11_08_04&utm_medium=email&utm_term=0_fb834d017b-7345966575-78934409&mc_cid=7345966575&mc_eid=a126ded657

Madera County named one of the fastest growing communities in the West

MADERA COUNTY, Calif. (KFSN) — The sounds of construction have become the norm in Madera County.

“No matter what part of the county you look at, there is some major pieces of construction going on,” said Bobby Kahn, the executive director of the Madera County Economic Development Commission.

A recent study by the U.S. Department of Commerce Bureau of Economic analysis showed Madera County saw the fastest growth in the West in a medium-sized community with a 6.6% increase for its gross domestic product, which is the value of goods and services produced within the county.

The study highlighted growth areas in agriculture and forestry, especially in the mountains where trees have died.

“It’s creating a lot of forestries that we possibly didn’t have in the last, and you see a lot more logging trucks on the road in Eastern Madera County to places where it can be processed,” Kahn said.

In the city of Madera, new businesses are going up. Full Throttle suspension is expanding to this 100,000 square foot facility near the airport.

Nearby, a new fire station is expected to be completed in the next month.

At the Freedom Industrial Park, manufacturer TranPak is getting closer to opening.

Many projects are coming to fruition in 2020, including this loves travel stop. It just opened recently off Highway 99 and Avenue 17 and features space room for cars, trucks, and a dog park. More than 90 jobs were created.

Housing developments are changing the landscape of Madera.

“We have growth going on in Chowchilla, the city of Madera, and of course all of the growth going on along Highway 41 with River Stone, Tesoro Viejo, And then you’re seeing infrastructure work being done at children’s hospital, that’s part of the Gunner West project, which is fully entitled,” Kahn said.

Kahn believes a positive economy and planning are helping encourage growth. Leaders expect even more growth in 2020.

“It’s the geographic center of the state. It’s also one of the most affordable areas to develop in the state,” Kahn said.

All of the projects are benefitting the city and county with tax revenue and more job creation.

A Brave New World: Latest in agriculture at Expo in Tulare

TULARE — Traditionally the Farmer’s Almanac predicts rainy weather during early to middle February said Lt. Boatman from the Tulare Police Department, who was helping on the first day of the 2020 World Ag Expo on Tuesday, at the International Agri-Center in Tulare.

But it was a clear, bright, and beautifully sunny day, and at least 30,000 people or more were expected to attend the show. And over the three days, Tuesday, today and Thursday, Feb. 13, there could be anywhere from 90,000 to more than  100,000 people attending from all over the world.

When the gates opened and hundreds of people were lined up to enter, at about 9:30 the Star Spangled Banner was sung, and people respectfully sang with their hands over their hearts.

Boatman said the Porterville Police Department, and the Tulare County Sheriff’s Department were also helping the Tulare Police Department, as well as the Explorers from all over Tulare County.

On the trams that run throughout the Ag Expo, people were getting rides to wherever they needed to go, and all of the Expo volunteers were incredibly helpful and accommodating.

There are more than 266 acres of fascinating new agricultural equipment, such as huge feed mixers, farm trucks, with huge pavilions full of exhibitors throughout the show.

Looking at giant mixers for cattle feed, they look like huge blenders that mix alfalfa, grain, corn silage, minerals and vitamins, or whatever the nutritional needs to keep cows healthy, explained a rancher.

Hopping on one of the trams, Bill Horst, who’s been to all of the ag shows since they started in 1968, or 51 years ago, said there’s lots to see, lots to do, and the food was great. He recommended the Peach Cobbler.

There was a large pavilion where hemp products were being displayed, and an informational talk was being given, explaining oilseed, fiber, and extract type comes from hemp, and hemp fiber has been made to make clothing for years.

For medical use there’s “cannabis” which is used by adults.

A vendor for special bags to keep hemp fresh said there’s a big wave of growers who are getting back into growing hemp because of the huge variety of uses, besides CBD oil, which can be used medicinally.

Besides exhibits of merchandise, and vendors at the show there are also all kinds of seminars at the expo such as a discussion about “Rural Broadband and it’s importance to Agriculture,” to presentations about international trade, and modern professionally installed irrigation, and much more.

Southern California Edison had an exhibit where they had an electric heavy duty farm truck, an electric forklift, and an electric Nissan car. Brian Thoburn said Edison’s theme was to showcase its vision to put a million medium to heavy duty electric vehicles on the road in California, to help the state meet its energy goals for clean energy. He said another important thing was Edison’s efforts to represent its $356 million investment to help their customers to make greater use of electric transportation, including agricultural, business, and residential customers.

Thoburn also said there was a safety demonstration, and Edison Electric Safety Board would give a presentation and explain safety issues of electricity outside the house, around electrical poles.

Later, sitting down having lunch, Ismael Aguirre, from Jordan Central Equipment, in Blythe, Calif., which is near Arizona, said he was at the show to see all the new tractors and farm equipment. “There are people here from everywhere, and it’s wonderful to see all the new equipment that comes out, and meet the people who build them. I love the technical side of the equipment.

Walking down one of the streets, Amanda Yan, from Hergesheimer’s Donuts in Porterville said the Porterville Exchange Club and students had a booth.

Thirteen students from Monache Hospitality Pathways helped out, in two shifts, with the Porterville Exchange Club Concession Stand selling hamburgers, fries, drinks, and specialty deep fried oreos, and more during the day.

Aira Baez, Carla Montejano, Michelle Garcia, Annie Otero, Madison Morris, and Kristina Williamson all said they learned how to prepare food efficiently, quickly, and under pressure, but they had fun and the food was “yummy.”

Johnny Orduno, Yolanda Bocanegra, Betty Luna, and Pete Lara, and others were all helping to run the stand, and Bocanegra, said it was her third time at the expo, and she’s a member of the Exchange Club. ”I love doing this and being a part of the group. They are wonderful people who serve the community of Porterville. And I love working with the students from all our Porterville schools.”

“The reason the Exchange Club does the food concession stand,” said Luna, Club President, “is to fundraise for child abuse prevention, support our veterans, and give scholarships to Harmony Magnet Academy and Strathmore High School.

Luna said to the students as they left, “You’ve done a fabulous job.”

THE 53RD WORLD AG EXPO® COMES TO A CLOSE

Tulare, CA • February 17, 2020 – Sunny skies, large crowds and optimistic attendees defined the 53rd edition of World Ag Expo®. The world’s largest annual outdoor agricultural exposition came to a close on Thursday, February 13 and boasted 1,442 exhibitors on 2.6 million square feet of exhibit space. The three-day show hosted 106,357 attendees representing 46 states, the District of Columbia and 56 countries.

Exhibitors reported high traffic, quality leads and a well-organized event. First year exhibitor Agland Management Consulting, Inc. was in the Hemp Education & Marketing Pavilion and their team was pleased with their first trip to World Ag Expo®.

“It was great. We’re excited hemp was part of the show. We got multiple good leads and will be working with new counties on regulations,” shared Josiah Thomas of Agland. “The second day was the best and the show was better than we could have imagined.”

Attendees came from all over the world to network and learn about the newest ag equipment, services and technology. More than 130 educational seminars, demonstrations and workshops were held over three days and covered a variety of topics ranging from irrigation to hemp, livestock to international trade.

“What a fantastic show!” said Jerry Sinift CEO of the International Agri-Center®. “There were 124 international business matchmaking sessions, hemp was included as a new option for farmers, new products were launched – there are just so many good things to say. Our exhibitors step up their game every year and it creates an even better business platform for our attendees.”

American Farm Bureau Federation President Zippy Duvall kicked off opening day with a well-received speech and took a tour of his first World Ag Expo® that focused on technology, the international flavor of the show, hemp and dairy.

Other popular attractions at the 2020 World Ag Expo® included the Ride & Drive areas, Wine and Cheese, and the Demonstration Pavilion.

The 2021 World Ag Expo® will be held February 9-11. Space renewals are now being accepted from 2020 exhibitors. Potential exhibitors can begin requesting space on March 1, 2020 at www.worldagexpo.org.

https://www.worldagexpo.com/the-53rd-world-ag-expo-comes-to-a-close

Business landscape looks bright for Shafter

January 9, 2020 | View PDF

Courtesy Wonderful Company

The Walmart distribution center is scheduled to open in the fall of 2020.

The City of Shafter has been enjoying a reputation of being one of the fastest growing cities in business in recent years, attracting such companies as Target, Ross and several other big retailers.

The most recent addition is Walmart, which is scheduled to open the most technologically advanced distribution center in the nation in Shafter in the fall of 2020.

Bob Meadows, business development director for the city, says Shafter is a sought-after destination for businesses, large and small.

“We have several irons in the fire. This year should see the city continue to build on this success and make 2020 a special one.”

Financially, the city has been touted as one of the most financially sound cities in the state. Meadows said that since he joined the city last year, he has become aware of the great reputation the city has in Kern County, as well as in the state of California.

A big draw for the city, Meadows says, is the willingness of the city to work with potential developers and retailers, as well as the technological advantages Shafter has. “Having the city connected through our fiber optic lines throughout the city has been a great benefit.”

Looking forward into 2020, Meadows said that the biggest item on the agenda so far is the opening of the Walmart facility. This will mean over 200 jobs for the community, with about a third of the jobs STEM-related – tied to science, technology, engineering and mathematics — with the other two-thirds general laborers.

“We are excited to see how many of the jobs are going to go to Shafter residents, which will mean the dollars staying here locally,” commented Meadows.

Another exciting development for 2020 is the growing relationship between the city and the Kern County Hispanic Chamber of Commerce. The KCHCC has been very beneficial to county and its businesses, Meadows said, with a good many of businesses working with the chamber enrich the local communities.

In addition to the contacts that are made with a relationship with the chamber, they also have made a big impact on local businesses with holding their business academies. The academy is a 12-week program that helps small local businesses learn how to operate successfully, as well as how to market their products and services, and get their companies out in the community. “We are looking forward to the possibility of holding a business academy right here in Shafter for our local businesses,” said Meadows.

As far as new businesses on the horizon, Meadows said that there has been a lot of interest in several locations throughout the city, including the property at Central Avenue and Central Valley Highway that used to house Brookside Deli. “We have a couple of people that are very interested in the property, and they both are food-related, which is good because the property already is equipped to house a food establishment,” Meadows said.

He said that they also have had discussions about different businesses coming to Shafter, including a veterinarian, additional automotive service businesses, a drive-thru car wash and additional medical clinics. “Rural medicine is a big issue in our economy, with a lot of people looking for affordable healthcare,” Meadows said.

The city was the recipient of surplus of sales tax revenue last year. This unexpected development was the result of a large number of customers who ordered products online this year.

Retailer William Sonoma paid the city a large amount of sales tax money that was not forecast. “A lot of people ordered online this last year,” said Meadows, “which was very nice for us.”

Meadows said that the businesses at the Wonderful Logistics Park do amazing things when it comes to business relationships across the state and the United States, but there is not a lot of actual income that is produced out there.

“The difference in the William Sonoma retailer and retailers like Target and Ross is that for the online ordering, the sale is actually in the city of Shafter. With the distribution centers, the sales are not done here, the product is just shipped to and from a location, so the sales tax money goes to the city where the sale actually takes place.”

In addition to the Hispanic Chamber, the city also has been in contact with the Small Business Development Center in Bakersfield for a possible workshop in the near future. The group, based out of Cal State Bakersfield, held a workshop this last year that was well attended and gave local business owners valuable information about how to grow your business, including marketing and creating a presence on social media, as well as how to go about financing a business venture.

“What we are looking at would build on that workshop, becoming a regular meeting that would be set up for our small businesses who may need advice on how to operate their business, as well as getting them in contact with the correct people and agencies to further their success,” Meadows said.

“The business landscape is looking up for Shafter when it comes to all phases of the business arena,” Meadows concluded.

https://www.theshafterpress.com/story/2020/01/09/news/business-landscape-looks-bright-for-city/1204.html

New warehouses, hotels, restaurants coming to Visalia’s Industrial Park

VISALIA, Calif. (KFSN) — Rod Jurbina remembers a time, perhaps just 15 years ago, when there wasn’t much to see in parts of Visalia’s industrial park.

At the time, he was working for a gas company.

“We put in a four-inch plastic gas main in there and I was asking myself, ‘I wonder why they need this here because there’s really nothing out here for now,'” Jurbina said. “And now look what it’s developed into.”

In a January economic update, city employees describe an industrial park that is growing substantially. The reason for the growth?

The city says it’s multiple factors, including the cost and availability of land, Visalia’s central location in the state, and the expansion of the UPS’ ground hub at this massive facility at Riggin Avenue and Plaza Drive.

The city expects UPS will add another 250 jobs but predicts it will also spur new development and more jobs.

“So now other companies that are in that kind of a business model will now look at Visalia, and say ‘Hey, we can service the state, we can go south, we can go north, one-shift kind of thing,'” Visalia Councilmember Steve Nelsen said.

Millipore Sigma, an east-coast based life-sciences company, is now up and running in their west coast distribution center on Riggin Avenue.

The city says construction will start soon on even more massive warehouses in that area.

Closer to the freeway, in the business research park, a large new development has been proposed with space for offices, stores, and a park in the middle.

A Residence Inn recently opened across the street, and two more hotels are planned.

Jurbina, who now works in the industrial park, is supportive of its rapid expansion.

More people will have jobs, he says, and the city will benefit by way of tax revenue.

“Any time there’s growth, there’s always a good opportunity for everybody,” he said.

The industrial park is getting close to meeting its current growth boundary established in 2013.

On Thursday night, the Visalia planning commission and city councilmembers will consider moving it into another tier where more land could be developed.

This California Farm Town Is Launching Startups Faster Than Seattle, Boston, and the Bay Area

By Guadalupe Gonzalez Staff reporter
Knowing little English, Rosibel Hurst came to the U.S. from Honduras dreaming of a medical career. She translated her nursing coursework using English-Spanish dictionaries. In 2018, Hurst’s Bakersfield beauty startup made $2 million–which gave her the courage to quit the full-time nursing job she’d kept to support her five-yearold company. “I’m finally going all in,” she says. “I’ll build the business every day and see where it takes me.”
KAYLA REEFER

Once a recurring punch line in Johnny Carson’s monologues, the agriculture-and-oil town of Bakersfield, California–home to the country’s most prolific carrot farm–is not the most obvious example of a West Coast startup hub.

But the Central Valley city, population 400,000, has vaulted onto this year’s Surge Cities list by outperforming 46 other metro areas–including the Bay Area, Boston, and Seattle–in net job and business creation in the past year.

“Incredible things are happening here,” says Irma Olguin Jr., co-founder and CEO of Bitwise Industries, a Fresno-based tech academy and software startup that’s helped create about 1,000 jobs in the area. It’s opening a Bakersfield location in 2020. “We’re seeing validation from VCs and investment banks, and there is a momentum around local revitalization.”

According to Anna Smith, co-founder of local real estate firm Sage Equities, this Bakersfield boom has been helped by entrepreneurial Millennials who’ve returned home from more expensive cities. They’re finding a growing tech community, bolstered by events like the 59-day hackathon led by nonprofit 59DaysofCode.

Maria Coward’s 27-year-old restaurant, La Costa Mariscos, serves authentic Puerto Vallartan seafood dishes in the city’s historic Ice House Building. She recently opened a second location across town.KAYLA REEFER

Latinx founders, whose ranks swelled by 36 percent from 2007 to 2012 in Bakersfield, have also been essential to the city’s evolution. Today, approximately three of every 10 companies in town are Latinx owned, and membership for Bakersfield’s Hispanic Chamber of Commerce has ballooned from 200 businesses to 1,200 in less than a decade.

Rosibel Hurst’s Bellissima Medical Aesthetics is one of 8,500 local Latinx-owned businesses. In 2014, the founder, who was born in Honduras, launched her beauty clinic, which offers procedures such as Botox injections and skin-tightening treatments, from a single room inside of a supportive doctor’s office. Today, Bellissima is profitable, with roughly $2 million in annual sales and 13 employees. “I was able to grow this company because of the help I got from people here,” she says. “Bakersfield is a giving city.”

As the field of startups grows in Bakersfield, so do the resources to sustain it. In 2018, Bakersfield businessman John-Paul Lake co-founded the city’s first angel investing firm, Kern Venture Group, and worked with the city’s community college to create Launchpad, which helps local entrepreneurs grow their businesses.

At Oasis Air Conditioning, founder Ben Dominguez and his 28 employees are expanding into the solar panel market to meet growing demand from the city’s homeowners.KAYLA REEFER

Originally created in Fresno to assist refugee farmers, loan fund Access Plus Capital has doled out 22 microloans worth more than $1.6 million to Bakersfield entrepreneurs since it began servicing the city in 2012.

“People are realizing that the Central Valley is changing,” says Edward Palomar, manager of the fund’s Bakersfield office, which opened in 2017. “They see the opportunity for growth here.”

https://www.inc.com/magazine/202002/guadalupe-gonzalez/bakersfield-california-central-valley-latinx-entrepreneurs-2019-surge-cities.html

The CVBT Podcast: Bay Area manufacturer moves headquarters to Central Valley

Central Valley Business Times

December 16, 2019

  • Jatco Incorporated finds warm welcome in Modesto
  • Uses robots and human workers for precision molding

For anyone who might have thought high-tech manufacturing cannot be found in the Central Valley, there’s a now-former San Francisco Bay Area company that might change one’s mind. It’s Jatco Incorporated, a plastic injection molding company that has packed up and moved its headquarters and main manufacturing plant to Modesto after some 40 years in the Bay Area.

“We are plastic injection molders. We’re custom molders, which means that we produce product that different OEMs require,” says Steven Jones, president of Jatco. “We product a lot of medical products, some agricultural  product, consumer product – a very wide range of plastic product … from very tiny medical parts to things the size of a curbside garbage bin.”

Mr. Jones says the company employs more than 100 workers in the new plant on Stoddard Road. Steven Jones is president of Jatco and joins us on this CVBT Audio Interview Podcast to tell why his growing company picked Modesto….

Please click here to listen:

https://americanbizradio.net/

Or here:

For more information:

https://www.jatco.com/

Registration opens for 6th “Valley Made” Manufacturing Summit

 

  • Set for April 21, 2020 in Fresno
  • Features keynote speaker John Shegerian The 6th annual “Valley Made” Manufacturing Summit is scheduled for April 21, 2020 in Fresno, say the sponsors, the San Joaquin Valley Manufacturing Alliance and the Fresno Business Council. It is scheduled to feature keynote speaker John Shegerian, co-founder and executive chairman of Fresno-based ERI.

More than 1,000 representatives from the manufacturing industry are expected for the day-long event at the Fresno Convention Center Exhibit Hall. Registration is open by visiting www.sjvma.org. Also sponsorships and exhibit space are available by contacting Genelle Taylor Kumpe via email (genelle@sjvma.org) or calling 559.214.0140.

The event is designed as a workshop and resource expo that celebrates the Valley’s history of innovation in manufacturing while providing resources and networking opportunities that continue to build a well-trained, outstanding workforce.

“The goal … is to provide manufacturers with the needed resources and workforce connections to upscale and train existing employees for today’s automated technologies, and to attract the next generation workforce to grow the industry and region for a brighter future,” says Troy Brandt, chairman of the board for the San Joaquin Valley Manufacturing Alliance and general manager at Hydratech.

Mr. Shegerian is scheduled to talk about how to attract and retain effective employees and clients through good times and bad. As an entrepreneur, Mr. Shegerian co-founded several organizations built on his philosophies of making the world a better place one business at a time, and of providing a second chance to those who are most in need. His philosophies have led him to run the largest electronic recycling company in the U.S., among other ventures.

“The convention center will be filled with the leading lights of the Central Valley’s manufacturing industry and many of my fellow local business leaders, so I’m excited to have the opportunity to share useful takeaways regarding positive culture team building and how to balance best employee retention practices and effective operations with growing a profitable enterprise,” says Mr. Shegerian.

The San Joaquin Valley’s manufacturing industry is responsible for nearly $15 billion of the Valley’s gross domestic product and employs more than 105,000 people. Nationally, it is estimated that over the next decade, almost 3.5 million U.S. manufacturing jobs will need to be filled due to baby-boomer retirements.

https://files.constantcontact.com/2cb20f61601/c1ad790b-010c-4a85-8e70-0e8f5ff54f78.pdf

Plans emerge for major cannabis facility in Modesto. Up to 250 jobs are projected

 
A Canada-based company plans to use a 196,000-square-foot building in Beard Industrial tract to manufacture and distribute cannabis products. It would possibly be the largest commercial cannabis facility in California. The building, on Daly Avenue, is pictured here, on Monday, Dec. 9, 2019, in Modesto, California.

A Canada-based company plans to use a 196,000-square-foot building in Beard Industrial tract to manufacture and distribute cannabis products. It would possibly be the largest commercial cannabis facility in California. The building, on Daly Avenue, is pictured here, on Monday, Dec. 9, 2019, in Modesto, California. 

A Canada-based company has big plans to manufacture and distribute cannabis products from an expansive building in Modesto.

In April, Transcanna Holdings Inc. announced the purchase of the 196,000-square-foot building on Daly Avenue in the Beard Industrial District. The company with corporate offices in Vancouver has also acquired locally based Lyfted Farms, a county-permitted cannabis business that will manage the Modesto operations.

Lyfted is seeking a permit from Stanislaus County for growing cannabis in a 32,700-square-foot area inside the building. Cannabis products would be processed and packaged in the former turkey processing plant and distributed to retail outlets in California.

At full scale, the production facility operating seven days a week could employ 200 to 250 workers. In addition to cannabis flower, pre-rolls, oils and cannabidiol, the plant would use an extraction process to make edibles and vaping products.

The three-story facility also has the ability to freeze harvested cannabis to preserve its essential ingredients.

“We like indoor growing, but most of the facility would be for distribution and manufacturing,” said Steve Giblin, Transcanna’s chief executive officer.

Plans are to begin operations in the first quarter of 2020 with a small cultivation area and distribution, said Bob Blink, chief executive officer of Lyfted Farms. Security measures will include an 8-foot perimeter fence, surveillance cameras, an alarm system and at least three security guards.

“It is very secure,” Blink said. “Security is a big point locally and in the state. It has the best security around just by the way the building is designed.”

Transcanna is a startup company formed two years ago. With the Modesto processing plant, Transcanna’s website says, the company is positioned to serve the cannabis market in California, which apparently is regarded as the largest in the world. Extensive improvements have been made to the building.

The company’s stock is listed on the Canadian Securities Exchange. The stock price has swung from $7.88 per share in May to closing at 79 cents on Monday.

A county Planning Commission hearing on the project could be set for Dec. 19, if the applicants come through with requested information for the county this week, or the hearing could be held in January.

County Senior Planner Kristin Doud said staff was waiting for information such as whether rooftop parking would be utilized. In addition, the county and the applicant still were discussing the fees to be paid to the county. A facility of that size could generate millions of dollars in fees over a five-year period.

A study on air quality and odor control could raise some questions before the Planning Commission, and traffic is another potential issue.

Doud said the cannabis fees spelled out in development agreements are based on the cultivation square-footage and anticipated output of manufacturing and distribution or may be a simple 3 percent of gross sales.

An earlier proposal for the Daly Avenue building was one of the original applications in 2017 when the county rolled out its permitting program for commercial cannabis, which was legalized by Proposition 64. A county screening process rejected that first application because it included too many applicants for one site, Doud said.

Lyfted came forward with the current application when a second county application window opened in August.

Transcanna said in April it had purchased the Daly facility for $15 million and would make an $8 million down payment, while the seller, Cool Swang, carried a $6.5 million promissory note at 7 percent interest for 13 months. In October, the company said the loan’s maturity date was being extended six months and issued 500,000 in restricted shares of stock (priced at 56 cents) to Cool Swang to settle a $280,000 fee. Cool Swang is owned by Chad Swan.

When asked about the company’s current stock value, Giblin said there was initial enthusiasm for investing in the cannabis industry but the realities of business are now affecting the stock price. Investors will want to see profits on the horizon.

Giblin said he expects the Daly building and the strong facility management team will help establish investor confidence. Alan Applonie was hired in June as the plant’s general manager. According to a news release, Applonie was instrumental in growing a consumer packaged goods company “from startup to two billion dollars in annual revenues” and has infrastructure systems experience with Amazon, Starbucks, Walmart and Kroger.

Transcanna also will rely on the expertise of Lyfted Farms. Earlier this year, county supervisors approved a permit for Lyfted to grow cannabis indoors and package products in a 19,500-square-foot warehouse on Jerusalem Court in north Modesto.

The Canadian firm also acquired a cannabis business called SolDaze, which is based in Santa Cruz.

Giblin, who has a history of turning companies around in the hotel and real estate industries, said the company needs to obtain the county permit and then approval from the state.

“We are happy about the strategic purchase of the Daly building and we really like Modesto,” Giblin said. “We think it’s a great place to grow.”

https://www.modbee.com/news/local/article238194959.html