Secondary Equipment Market

Written By Canadian Cannabis Exchange

June 30, 2021

New cannabis companies looking to begin acquiring equipment and infrastructure for their facilities may want to consider taking advantage of a growing number of producers who are looking to offload their own equipment. Following the incredible amount of growth and speculation in the cannabis sector in Canada over the last few years, many cannabis companies seem to have gone on buying sprees, grabbing up all kinds of equipment, from lights to grow tables to cooling and HVAC systems.

Much of this equipment is now sitting, often unused and still wrapped in its original packaging, and owners are increasingly eager to offload these assets. This eagerness can mean opportunities for others getting into the cannabis space and looking for similar equipment. The savvy shopper can find many of these options on the CCX platform including lights, tables, HVAC systems, air conditioners, drying racks, trimming machines, and security equipment.

Buying brand-new products directly from the manufacturer can have many advantages, but sourcing pre-owned or used equipment through a trusted third party can mean significant savings at a time when your start-up may already be cash-strapped.

Although much of the excess equipment available in Canada likely came in the wake of the gold rush of skyrocketing valuations pre-2020, even in a more balanced market space, depreciation of assets and changes in business plans can be common. Companies may find their first round of equipment is not the right fit moving forward, or may want to upgrade to larger capacity. Some could even be liquidating an entire facility, or just making small upgrades to stay ahead of the curve.

 Another important factor when considering any equipment purchase, be it previously-owned or direct from the manufacturer, is that in Canada, all such equipment must be in compliance with federal and at times local regulations. Health Canada, for example, will not allow the use of equipment that does not have ULC/CE/CSA certification. Purchasing equipment not certified by these agencies can mean sitting on equipment you cannot use and may not be able to re-sell.

  • The ULC Mark is issued by Underwriters Laboratories of Canada.
  • The CE marking is an administrative marking and environmental protection standard for products sold within the European Economic Area (EEA).
  • The CSA Group is a Canadian standards organization which develops standards in 57 areas, comprised of representatives from industry, government, and consumer groups.

Building a new cannabis company can take significant resources, both time and money, considering options from the secondary market offers highly reduced prices and immediate availability within Canada.

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