Cannabis Security Firm Eyes Bullet Proofing and Armed Guards Next

NEW YORK (MainStreet) — A former project manager who handled security for iHop, Chipotle, Pizza Hut and Dunkin' Donuts nationally now owns Canna Security America (CSA), a $4.2 million company that installs alarms, camera systems and other security equipment to marijuana dispensaries and growing facilities across the country.

Also See: Marijuana Stocks Hover After Soaring on Talk of Bank Regulation Reform

 

"The majority of our clients are trying to protect their crop," said Dan Williams, founder of CSA.

Because many are cash-based operations, pot growers and sellers need reliable security.

"Every state regulates and mandates that dispensaries have security systems," Williams said. "That's were CSA comes in. We keep track of each state's regulations and we wrote the security regulations for Colorado."

Also See: Colorado's Attorney General Still Says Legalized Pot Is Bad Public Policy

 

When theft occurs at a grow facility or pot dispensary, 90% of the time it's an inside job, according to Williams.

"That's probably true but we don't have that problem," said Drew Keller, who uses CSA's services at his dispensary and grow facilities in Colorado. "We track it too hard. It'd be tough to steal without us knowing. We weigh it eight times before it gets to the store and then it's already broken down and prepackaged."

Both Williams and Keller attended the ArcView Investor Network in Boston last week. Williams was in search of money to complete series A financing that will fund the launch of his Cloverton Group to incorporate armed guards, transportation vehicles and bullet proof windows.

Also See: Inside the Legal Pot Industry's Most Illustrious Investor Network

 

"We want to expand into newly legalized states as well as offer packages to our clients so that we can finance updated security systems for them," Williams told MainStreet. "We've had several offers to go public but we aren't doing so at this time."

So far, Williams has already raised $540,000 of the required $1.9 million.

"We got an offer for the remaining $1.42 million from a large equity group, but we prefer to have private accredited investors rather than a private equity group," said Williams. "It's not easy to find."

The danger is that a private equity firm could take CSA public inadvertently by selling shares within their funds.

"It's cleaner to keep all your stock in house," said Williams. "When it comes to pooling resources you want to do business with people you know."

That's why Williams keeps coming back to the ArcView Investor Network.

"It's a small group that have been meeting these past few years," Williams said. "We all know each other very well. We support each other. I prefer investors from ArcView Group because they care about the industry and they are involved."

Currently, CSA has clients in 12 medical marijuana states, including Colorado, Washington, Connecticut, Massachusetts, Arizona, New Jersey and Nevada.

"There are a few competing companies popping up here and there, but we're not concerned because of the eccentricities of the banking problem within the cannabis industry, which include having to be paid with cash, money orders or a bank transfer," said Williams. "Our average system runs $25,000 and a lot of that business is done through bank wire. Other security businesses are concerned they won't be paid but we haven't found that to be a problem."

--Written by Juliette Fairley for MainStreet

Show Comments

Back to Top