Most cannabis packaging companies are packaging manufacturers or packaging distributors - we are neither. We work with strategic partners and suppliers to move cannabis packaging away from the linear "take-make-dispose" economic model to a circular "make-consume-return/enrich" model. To date we have more than 350 customers buying our line of 6 products. We've generated $870k in 2020 YTD sales up from $630k in 2019 sales. We've already removed more than 45 tons of plastic waste from our oceans and used more than 54 tons of hemp plastic. We're raising capital to continue to invest in product development and support our current customer accounts. We are excited that you are interested in joining us on this sustainable journey.

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Ron Basak-Smith, Co-Founder & CEO

Financial Summary

Previous Fundraise Summary

Security Type Preferred Equity
Investor Eligibility All Investors
Minimum Investment $5,000
% Offered 6.70%
Liquidation Preference 1.0x
Voting Rights Limited
Dividend At Company's Discretion
Valuation $5,000,000
Investment will be made through a Special Purpose Vehicle (SPV)

Sana Packaging, Inc. is currently pursuing $800,000 through a Series Seed Preferred Equity offering.  The primary preference being provided to investors in the offering is a 1x liquidation preference.  This means that upon a distribution event the Series Seed Preferred Equity holders will receive their capital back before other owners. After capital is returned the Series Seed Preferred Equity holders will receive distributions based on their ownership percentage.  The Company has raised $245k outside of Localstake as of the time of this writing and are looking to raise another $555k before the target close date in mid-October.

Localstake is marketing the offering through its platform to raise some or all of the remaining availability in the offering.  Upon raising a minimum of $200k, Localstake will create and administer a special purpose vehicle into which all funds from investors will be pooled. At that time, committed investors will be able to review the final offering materials for the SPV and complete their investment. A Localstake affiliated entity will then invest those funds into the Company under the terms of the Series Seed offering. Investors in the SPV are limited to accredited investors and will be charged a one-time $10k for setup and administration of SPV over the life of the investment as well as a 10% carried interest charge on funds distributed back to the investors in the SPV.  Localstake will likely cap the amount raised into the SPV at $500k and in any event won't be more than $575k.

Pitch Deck

Pitch Deck

Financials

Financial projections are subject to certain risks of the business and may not be achieved. Projections only contemplate projected cash flows, are unaudited and may not be formulated in accordance with US Generally Accepted Accounting Principles. Consult the investment materials for more information on business specific risks and a discussion of the key risks that may impede the achievement of the revenue forecasts presented. There is no guarantee that an investment may achieve any level of return. Review our Risks of Investing before making an investment decision.

Funding Plans & History

Q&A

Do you have current customers?

Sana has over 350 customers in key cannabis and hemp markets across the US as well as in Canada, Brazil, Guam and Puerto Rico.  They are heavily involved in the labeling process for customers' packaging and their relationship building and on-time delivery track record is unique for the industry. This usually translates to high customer retention rates.  The companies top states and customer counts in those states are as follows:

  1. California - 59
  2. Oregon - 35
  3. Colorado - 29
  4. North Carolina - 21
  5. Oklahoma - 18

See below for customer testimonial videos.

Related Links
What is your current customer pipeline?

Sana adds to its customer list everyday. In 2019, the Company averaged 17 new customers per month. It sells through distributors as well and is looking to grow our longer term, more strategic partnership customer base. A couple of examples of this effort include:

  • Dixie Brands announces strategic partnership with Sana Packaging
  • Mind Your Head Cannabis (Grateful Dead's Mickey Hart) announces strategic partnership with Sana Packaging
Provide us with some background on your products and services.

The Sana product line is based on providing the cannabis industry with sustainable and recycled packaging products. The Company started with the industry's first 100% plant-based hemp plastic packaging and the industry's first 100% reclaimed ocean plastic packaging. The hemp plastic is 100% plant based, chemical free and #7 recyclable. The reclaimed ocean plastics is Oceanworks Guaranteed 100% HDPE (#2 recyclable).  One industry participant provided this commentary around the product ethos:

“I hear from our customers nothing but positivity regarding your product. People are often pleasantly surprised to learn that there is a push toward sustainability in our industry, and often ask rhetorically ‘why isn't everyone doing this?’ Great question. It is a pleasure for us to be in business with you. Thanks.”

Sana now has a product line built on six different SKUs:

  1. 1/8th Hemp Container
  2. 110m Hemp Tube
  3. 110m Ocean Tube
  4. 78m Hemp Tube
  5. 78m Ocean Tube
  6. Ocean Screw Tops

All of Sana's products are 100% USA made.

Related Links
What awards or industry recognition have your products received.
What market(s) are you in?

Sana operates in the Cannabis Packaging direct market segment and the consumer goods packaging indirect market.  According to Zion Market Research, the Cannabis Packaging segment was worth $1.1 billion in annual sales in 2018, projected to grow to $4.2 billion by 2025.  Cannabis packaging is a crowded space, but Sana is the industry leader in sustainable cannabis packaging, they have deep expertise and customer relationships and the Company's brand is establishing dominant recognition.

Team

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Ron Basak-Smith

Co-Founder & CEO

Ron earned a B.A. in Sociology from Ithaca College in 2011 and an M.B.A. in Sustainability, Entrepreneurship, and Finance from the University of Colorado Boulder in 2017. Ron’s goal is to support the sensibility and soft skills of his Sociology degree with the hard skills of his M.B.A. in order to bring positive social and environmental change to his business endeavors.

In his free time, Ron enjoys skiing, mountain biking, and exploring the Rocky Mountains. Ron is passionate about protecting our natural environment and believes the private sector has a responsibility to drive positive social and environmental change.

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William James Eichner

Co-Founder & CSO

My career has been a bridging of passions and communities that I hold dear, from sustainability consulting to the music industry, the social justice sector, and the environmental justice sector. Prior to Sana, I was Managing Partner at Entrepreneurial Solutions in Boulder, CO.

In my free time, I like to get outside and ski, run, or hike with my dog, Piper. Also, I'm a live music junkie.

1600264642 screen shot 2020 09 16 at 9.53.43 am

Peter Kemper

Director of Sales

Prior to Sana, Peter was Co-Founder and COO of Herb & Olive a producer of extra virgin olive oil infused with plant-based CBD.

About Sana Packaging

Entity Sana Packaging, Inc.
Entity Type C-Corp
State Organized Delaware
Founded January 2017
Employees 3
Social Media
Website

Headquarters

Company Updates

Sana hit $1.1M in YTD revenue in Q3 2020!

October 5, 2020

Q3 2020 at a glance:

  • 2020 YTD revenue: $1,129,814 - up 161% YOY.

  • Q3 2020 revenue: $430,820 - up 23% from last quarter.

  • September revenue: $172.4k; August revenue: $108.2k; July revenue: $150.2k.

  • Customers: 350 and counting - 41% of customers have placed multiple orders.

Looking ahead to Q4 2020:

Sana is launching 2 new products this fall and anticipates a strong close to the year.

Discussion

SS
Scott S

Wondering the same, any updates?

8 months ago
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Ryan Flynn
Co-Founder at Localstake at Sana Packaging
Team Member

Hi Scott, the company extended the open offering period to January 15. If you have an interest in investing, please indicate as such with a dollar amount on the offering profile before Weds January 13. Feel free to contact info@localstake.com with any further questions. Thanks!

8 months ago
1 reply
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Angela B

Hi, is this offering still open? We have a close date of 12/31 in our records. Thanks.

8 months ago
1481557356 rf biopic copy bw
Ryan Flynn
Co-Founder at Localstake at Sana Packaging
Team Member

Hi Angela, the company extended the open offering period to January 15. If you have an interest in investing, please indicate as such with a dollar amount on the offering profile before Weds January 13. Feel free to contact info@localstake.com with any further questions. Thanks!

8 months ago
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Angela B

Hi, thank you Ryan. We unfortunately will not be able to complete a review of this offering before the deadline. Good luck to the company though!

8 months ago
2 replies

Risks & Disclosures

The Term Sheet is qualified in its entirety by the final draft of the Offering Materials

The description of the Offering provided on this profile and the limited liability company interests of the Fund is of a summary nature, does not purport to be complete, and is qualified in its entirety by reference to the Fund's Operating Agreement (the "Operating Agreement"), which fully provides for the final terms of the Interests.

An investment in the Company involves a high degree of risk, and should be regarded as speculative. Prospective investors should carefully consider these investment risks, among others, in addition to the other information presented in the Offering Materials, in evaluating the Company for investment. The risks listed herein are not a complete list of potential risks facing the Company and it may encounter unexpected risks in the future, which, may adversely affect its performance.

Company Updates

Sana hit $1.1M in YTD revenue in Q3 2020!

October 5, 2020

Q3 2020 at a glance:

  • 2020 YTD revenue: $1,129,814 - up 161% YOY.

  • Q3 2020 revenue: $430,820 - up 23% from last quarter.

  • September revenue: $172.4k; August revenue: $108.2k; July revenue: $150.2k.

  • Customers: 350 and counting - 41% of customers have placed multiple orders.

Looking ahead to Q4 2020:

Sana is launching 2 new products this fall and anticipates a strong close to the year.

Discussion

SS
Scott S

Wondering the same, any updates?

8 months ago
1481557356 rf biopic copy bw
Ryan Flynn
Co-Founder at Localstake at Sana Packaging
Team Member

Hi Scott, the company extended the open offering period to January 15. If you have an interest in investing, please indicate as such with a dollar amount on the offering profile before Weds January 13. Feel free to contact info@localstake.com with any further questions. Thanks!

8 months ago
1 reply
1600886449 revalue social logo 300x300.png
Angela B

Hi, is this offering still open? We have a close date of 12/31 in our records. Thanks.

8 months ago
1481557356 rf biopic copy bw
Ryan Flynn
Co-Founder at Localstake at Sana Packaging
Team Member

Hi Angela, the company extended the open offering period to January 15. If you have an interest in investing, please indicate as such with a dollar amount on the offering profile before Weds January 13. Feel free to contact info@localstake.com with any further questions. Thanks!

8 months ago
1600886449 revalue social logo 300x300.png
Angela B

Hi, thank you Ryan. We unfortunately will not be able to complete a review of this offering before the deadline. Good luck to the company though!

8 months ago
2 replies
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