Operational Audit of an Investor’s Portfolio Company Reveals Fundamental Shortcomings

3C was asked by investors to conduct an on-site assessment of a 20,000 square foot cultivation and extraction facility in Colorado. With their capital already deployed into the company, the investors wanted to ensure that operations were running compliantly and efficiently. 3C conducted an on-site audit of the facility. The company's operations were some of the best that we have seen to date, yet we identified over 50 issues throughout the facility. Examples include poor ventilation, improper storage of hazardous chemicals, inadequate plant lighting, insufficient emergency exits in the processing area, and more. As we mentioned earlier, this was one of the better facilities we have audited over the last five years. Still, we identified fundamental issues that put employee safety at risk and impacted the company's overall yield and production cost. Fortunately for the investors and operators, they took our report and have made several fundamental changes to their operations. Without the fixes, the brand and their licenses were at risk.