Former Minister Is On His Way To Making Millions From Marijuana

Former Minister Is On His Way To Making Millions From Marijuana

By Kelly Burch 08/16/17

A former minister is preparing to make a massive profit in 2018 when recreational marijuana hits the market in California.

Image: 
CLC Brand's Dan Osborne
CLC Brand's Dan Osborne Photo via YouTube

Dan Osborne is a former minister from Salt Lake City who voted no on California’s proposition to legalize marijuana for recreational use. This is not an unusual stance for a man of the cloth, except that Osborne had also invested more than $16 million to grow and sell on California’s medical cannabis market.

When recreational dispensaries open in California in January 2018, Osborne's company CLC Brand Labs will be able to supply marijuana to them. He expects to see business skyrocket. 

"Especially when it becomes legal—recreational—there's gonna be a lot of demand. It's gonna shoot through the roof,” said Osborne on an episode of CNBC’s The Profit, which documents the success and pitfalls of building a business. The episode, called "Marijuana Millions," aired on August 8. 

The money that Osborne has invested thus far has been used to build indoor growing facilities in Desert Hot Springs, California. He recently paid $1 million per acre for more space in the town. Although the price was steep, he was confident that his business will be successful enough to cover it. 

In 2018, Osborne expects to make $22 million. In five years, when he'll have 170,000 square feet of indoor grow space up and running, he expects to turn $35 million in profit each year. 

Despite his financial success, Osborne said that his conservative family doesn’t speak to him because he is involved in the marijuana industry. "My son-in-law won't even talk to me because I'm in this business. He's a pharmacist in Utah. And he's so against this," Osborne said. 

Because of his business, he isn’t even allowed to see his grandchildren, but he doesn’t think the kids will care in the future. 

"That's tough," he said. "But when the kids grow up, when my grandkids grow up and they find out that their grandpa is in the medical marijuana business, I don't think they'll be surprised. They'll like it.”

In the meantime, Osborne is preparing to make a massive profit on marijuana. "I'm gonna ride this business out until I sell," he said. 

By 2021, some estimates say that the retail marijuana industry in the United States will be worth $30 billion, according to Forbes—five times the current market value. California growers are excited to tap into the state’s massive economy, but some people are apprehensive about getting into growing, especially since California is slated to grow more marijuana than it will consume. 

“The entire experiment will fail if California’s continues to sell out of state,” Hezekiah Allen, the executive director of the California Growers Association, told The New York Times. “The more product that leaves the state, the more the federal authorities will intervene.”

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Kelly Burch writes about addiction and mental health issues, particularly as they affect families. Follow her on TwitterFacebook, and LinkedIn.

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