8LENDS

9,999.20USDC

99.99% of 10,000 USDC

Repaidon May 20, 2026

Funded date: Mar 26, 2025
Repaid date: May 20, 2026
Loan period: 14 months
Annual interest: 18.80 %

A new greenhouse for a growing seed business

Balkan Cannabis grows high-CBD and high-CBG hemp seeds in Bulgaria for European clients. It is raising €550K to add a new greenhouse with €415,400 of equipment, including climate control, dehumidifiers and automation.

9,999.20USDC

99.99% of 10,000 USDC

14 months18.80 %Repaid

Balkan Cannabis Seed and Consulting Ltd. operates a vertically integrated business model focused on the cultivation, processing, and sale of high-CBD and high-CBG hemp seeds. The company’s production is based in two leased greenhouses, each measuring 0.5 decares, and a separate facility used for storage, sorting, and packaging of the seeds. The use of controlled greenhouse environments allows the company to maintain consistent quality and output, making it independent from external weather conditions.

Core Products:

The company cultivates the following hemp seed varieties:

FENOSWISS: CBD up to 16%, flowering in 7-8 weeks.
FENOJOY: CBD 10-13%, flowering in 7-8 weeks.
FENOMOON: CBD 8%, flowering in 7-8 weeks.
FENOM: CBD up to 24%, flowering in 8-9 weeks.
FENOMAX: CBD up to 24%, flowering in 8-9 weeks.
FENOCHEESE: CBD up to 20%, flowering in 7-8 weeks.
FENOQUEEN: CBD up to 18%, flowering in 7-8 weeks.

Each cultivation cycle typically spans 4-5 months, depending on factors such as the seed variety, operational efficiency, and environmental adjustments.

Production Capacity:

On average, each greenhouse produces between 400,000 and 500,000 seeds per harvest. This yield is influenced by factors such as seed type, staff efficiency, and the operational management of the facilities. However, since 2022, the overall efficiency of production has declined. This likely stems from the company’s rapid expansion, which may have outpaced its ability to optimize operational processes and maintain the same level of efficiency. Addressing these challenges will be key to sustaining long-term growth.

Balkan Cannabis Seed and Consulting was foundedFeb 14, 2022

Start of active work/productionFeb 14, 2022

Revenue growth in 2022€696,995

Revenue growth in 2023€1,455,281

Revenue growth in 2024 (10 months)€1,382,994

Min target5,000 USDC

Investors25

Interest paymentsmonthly

Principal repaymentsbullet

Total payments14 months

Details

Financial Performance

The financial performance of Balkan Cannabis Seed and Consulting Ltd. demonstrates consistent growth across key metrics, underpinned by increasing production capacity and operational improvements. However, certain trends warrant closer examination to assess the company’s long-term sustainability and profitability.

The company has shown steady revenue growth over the analyzed period:

2022: €696,995
2023: €1,455,281 (+109%)
2024 (10 months): €1,382,994 (projected to surpass €1,600,000 for 12 months)

The average monthly revenue has increased significantly from €63,363 in 2022 to €138,299 in 2024, indicating improved sales efficiency and market demand. This aligns with the company’s increased production capacity and expanded client base.

Sales volume grew proportionally with production:

2022: 535,950 items sold
2023: 1,376,050 items sold (+157%)
2024: 1,362,650 items sold (projected stability)

Average sales per month climbed from 48,723 in 2022 to 136,265 in 2024, reflecting effective production and market outreach.

Production Efficiency

The company expanded from operating one greenhouse in 2022 to two greenhouses in 2023 and 2024. Production has risen accordingly:

2022: 678,410 seeds (1 greenhouse, average 61,674 seeds/month)
2023: 1,244,680 seeds (2 greenhouses, average 103,723 seeds/month)
2024: 1,404,941 seeds (2 greenhouses, average 140,494 seeds/month)

The significant improvement in production per greenhouse highlights better utilization of infrastructure and operational management. However, declining efficiency in 2023's gross profit margin indicates cost pressures from increased production.

Cost of Goods Sold (COGS) and Gross Profit

COGS has risen sharply, from €243,953 in 2022 to €680,238 in 2024, reflecting the increased scale of operations. Despite this, gross profit remains strong:

2022: €453,042 (65% gross margin)
2023: €1,037,000 (71% gross margin)
2024: €702,756 (51% gross margin)

The drop in gross margin in 2024 (from 71% in 2023 to 51%) suggests that the increased costs, possibly related to raw materials or operational inefficiencies, have started to impact profitability. Addressing these cost factors will be crucial for sustaining margins.

Operational and Capital Expenses

Operational expenses have grown in line with production, rising from €64,583 in 2022 to €311,779 in 2024, with monthly averages tripling over the same period. Similarly, capital expenses have decreased from €383,751 in 2022 to €147,267 in 2024, reflecting reduced investment in new infrastructure as existing facilities became operational.

Profitability and Net Profit

Profit before taxes increased significantly from €4,708 in 2022 to €243,710 in 2024. The repayment of a €522,000 loan in 2023 further strengthened the company’s financial position, leaving it debt-free as of 2024. Net profit trends:

2022: €4,237 (low due to initial investments and loan repayments)
2023: €19,493 (stable growth post-loan repayment)
2024: €219,339 (significant improvement, reflecting higher operational efficiency)

Organizational Structure

Balkan Cannabis Seed and Consulting Ltd. employs an effective organizational structure tailored to its operations in the industrial hemp sector. The team combines expertise, specialized roles, and efficient processes to ensure high-quality production and client satisfaction. The structure is designed to support both the cultivation of hemp seeds and the delivery of consulting services.

Key Roles and Responsibilities:

Director

The managing director, Nikolay Mitkov Mitkov, oversees the company’s strategic direction, ensuring alignment with long-term business goals. He is responsible for key decision-making, maintaining relationships with partners and clients, and overall company governance.

Manager

The operational manager coordinates daily activities, supervises interdepartmental collaboration, and ensures the completion of tasks critical to meeting production and sales goals.

Sales Manager

The sales manager focuses on acquiring new clients, negotiating contracts, and managing long-term relationships with key customers across Europe. They also handle client-specific needs and oversee consulting services.

Agronomists (2)

The agronomists lead the cultivation process, developing and implementing advanced agricultural techniques. They monitor plant health, analyze performance data, and optimize production processes to achieve consistent, high-quality yields.

Agronomist Assistants (2)

The assistants support the agronomists by conducting daily monitoring, data collection, and routine tasks, ensuring smooth greenhouse operations.

Workers (9)

The workers are responsible for practical tasks, including soil preparation, planting, plant care, harvesting, and primary seed processing. They ensure the operational workflow in greenhouses and processing facilities.

Cleaner

The cleaner maintains hygiene and order at the production facilities, ensuring compliance with sanitary standards crucial for agricultural operations.

Security Guards (2)

The security team ensures the safety of the premises, preventing theft, and protecting employees and equipment.

Description of the Loan

Balkan Cannabis Seed and Consulting Ltd. is requesting a loan of €550,000, structured into tranches, to support the planned expansion of its production capacity and operational scalability. The loan will be repaid over 14 months at an annual interest rate of 18.8%, with monthly interest payments and the principal amount due at the end of the loan term.

Loan Collateral

To secure the requested loan of €550,000, Balkan Cannabis Seed and Consulting Ltd. provides a combination of current assets, previously acquired equipment, and planned equipment purchases as collateral.

Collateral Details:

1.Cash Reserves:

- The company holds €220,000 in cash, offering immediate liquidity and demonstrating strong financial health.

Existing Equipment Investments:

- The company has invested heavily in production-critical equipment:

2022: €383,751

2023: €253,421

2024: €147,267

- Total existing equipment investment: €784,439

3.Planned Equipment Purchases:

- As part of the loan, the company will invest €415,400 in additional equipment for the new greenhouse, including advanced climate control systems, dehumidifiers, and automated processes.

4.Seed Inventory:

- While seeds represent a significant operational asset, their perishable nature and dependency on market conditions make them unsuitable as reliable collateral. As a result, seed inventory is excluded from collateral calculations despite its role in production.

Risk scoring

Total risk score8/10

Debt to equity0.90

LTV67%

Credit history9 / 10

Collateral typeCompany assets

The risk assessment rests on three years of growing revenue, a debt-free balance sheet since the 2023 loan repayment, and collateral combining cash, owned equipment and the new equipment bought with the loan.

D/E (Debt-to-equity) of 0.9 is low;
LTV of 67% keeps the loan below the 100% safe mark;
Credit history score of 9/10.

Keep in mind:

gross margin fell from 71% in 2023 to 51% in 2024 as costs rose;
overall production efficiency has declined since 2022 amid rapid expansion;
client relationships rely heavily on the personal connections of the director and owners;
the company is a relatively small player in the European hemp market.

Risk factors

Since 2022 the overall efficiency of production has declined. This likely stems from the company’s rapid expansion, which may have outpaced its ability to optimise operational processes; addressing these challenges will be key to sustaining long-term growth.

Cost pressure is visible in the margins: gross margin fell from 71% in 2023 to 51% in 2024, suggesting that increased costs, possibly related to raw materials or operational inefficiencies, have started to impact profitability. The company remains a relatively small player, and its client relationships rely to a large extent on the personal connections of its director and owners. Seed inventory is excluded from the collateral because of its perishable nature and dependency on market conditions.

Financials

Revenue 2023€1.46M

Net profit 2024€219.3K

Gross margin 202451%

Cash reserves€220K

€ thousands

€697k697

€1455k1455

€1383k*1383*

202220232024

* 2024 covers the first 10 months; full-year revenue is projected above €1.6M

Balkan Cannabis doubled its greenhouse count in 2023 and more than doubled revenue that year. The loan adds a new greenhouse to keep scaling production.

Growing revenue

Revenue rose from €696,995 in 2022 to €1,455,281 in 2023 — up 109%.
The first 10 months of 2024 brought €1,382,994; the full year is projected above €1.6M.
Average monthly revenue grew from €63,363 to €138,299.

Rising profit

Net profit grew from €4,237 in 2022 and €19,493 in 2023 to €219,339 in 2024.
Profit before tax reached €243,710 in 2024.
Gross margin stood at 51% in 2024, down from 71% a year earlier.

Scaling production

Seed output rose from 678,410 in 2022 to 1,404,941 in 2024.
Monthly production grew from 61,674 to 140,494 seeds on two greenhouses.

Market

The European hemp market was valued at about €1.6B in 2022 and is projected to grow at a 16% CAGR to €3.5B by 2030, helped by EU rules that encourage CBD and CBG. Bulgaria’s sector is still developing, but its climate, low labour costs and EU location make it a strong export base for seed production.

Financial performance

The company’s financial performance shows consistent growth across key metrics, underpinned by increasing production capacity and operational improvements, though certain trends warrant closer examination. Revenue grew from €696,995 in 2022 to €1,455,281 in 2023 (+109%); the first 10 months of 2024 brought €1,382,994, with the full year projected to surpass €1,600,000. Average monthly revenue increased from €63,363 in 2022 to €138,299 in 2024.

Metric	2022	2023	2024 (10 months)
Revenue, EUR	696,995	1,455,281	1,382,994
COGS, EUR	243,953	—	680,238
Gross profit, EUR	453,042	1,037,000	702,756
Gross margin	65%	71%	51%
Operating expenses, EUR	64,583	—	311,779
Profit before tax, EUR	4,708	—	243,710
Net profit, EUR	4,237	19,493	219,339
Capital expenses, EUR	383,751	253,421	147,267

Sales and production volumes

Metric	2022	2023	2024
Greenhouses	1	2	2
Seeds produced	678,410	1,244,680	1,404,941
Average seeds per month	61,674	103,723	140,494
Items sold	535,950	1,376,050	1,362,650
Average sales per month	48,723	—	136,265

Sales volume grew with production — items sold rose by 157% in 2023, with stability projected for 2024 — reflecting effective production and market outreach. The improvement in production per greenhouse points to better utilisation of infrastructure.

Costs and profitability

COGS rose sharply, from €243,953 in 2022 to €680,238 in 2024, reflecting the increased scale of operations. Gross profit nevertheless remains strong, although the fall in gross margin from 71% to 51% in 2024 shows that cost factors will need to be addressed to sustain margins.

Operating expenses have grown in line with production, from €64,583 in 2022 to €311,779 in 2024, with monthly averages tripling over the period. Capital expenses decreased from €383,751 in 2022 to €147,267 in 2024 as existing facilities became operational and less investment in new infrastructure was needed.

Profit before tax increased from €4,708 in 2022 to €243,710 in 2024. Net profit was low in 2022 (€4,237) because of initial investments and loan repayments, grew to €19,493 in 2023 after the loan repayment, and rose to €219,339 in 2024, reflecting higher operational efficiency. The repayment of a €522,000 loan in 2023 left the company debt-free as of 2024.

Market assessment

The industrial hemp market in Europe is growing rapidly, driven by demand for hemp-based products in medicine, wellness, cosmetics and food production. In 2022 the European hemp market was valued at approximately €1.6 billion and is projected to grow at a CAGR of 16%, reaching €3.5 billion by 2030. The growth is underpinned by favourable regulatory developments across the European Union encouraging the use of hemp-derived cannabinoids such as CBD and CBG.

In Bulgaria the industrial hemp sector is still in its developmental stage. The country’s favourable climate, relatively low labour costs and strategic location within the EU make it an attractive base for hemp cultivation and seed production; while the domestic market remains small, local producers benefit from strong export potential to larger European markets.

Collateral breakdown

Existing production equipment (2022–2024) · €784.4K€415.4K€220K

Existing production equipment (2022–2024)€784,439

New greenhouse equipment bought with the loan€415,400

Cash reserves€220,000

Total pledged€1,419,839Invested cost of equipment and planned purchases, plus cash held; seed inventory excluded.

The €550K loan is secured by the company’s equipment, the new equipment bought with the loan and its cash.

1. Existing equipment — €784,439

Production-critical equipment bought in 2022–2024.

2. New equipment bought with the loan — €415,400

Climate control systems, dehumidifiers and automated processes for the new greenhouse.

3. Cash reserves — €220K

Cash held by the company, offering immediate liquidity.

Seed inventory is not counted: seeds are perishable and depend on market conditions, so they are excluded from the collateral calculation.

Loan collateral

To secure the requested €550,000 loan, the company provides a combination of current assets, previously acquired equipment and planned equipment purchases.

Collateral component	Details	EUR
Existing equipment investments	Production-critical equipment: €383,751 (2022), €253,421 (2023), €147,267 (2024)	784,439
Planned equipment purchases	Equipment for the new greenhouse, financed by the loan: advanced climate control, dehumidifiers, automated processes	415,400
Cash reserves	Immediate liquidity	220,000

Seed inventory, while a significant operational asset, is excluded from the collateral calculation: its perishable nature and dependency on market conditions make it unsuitable as reliable collateral.

Description of the loan

Balkan Cannabis Seed and Consulting Ltd. is requesting a loan of €550,000, structured into tranches, to support the planned expansion of its production capacity and operational scalability. The loan is repaid over 14 months at an annual interest rate of 18.8%, with monthly interest payments and the principal due at the end of the loan term.

Borrower

Balkan Cannabis Seed and ConsultingSofia, Bulgaria · founded 2022

Reg No: 206825634balkan-cannabis.com

About the company

Balkan Cannabis Seed and Consulting Ltd. operates a vertically integrated business model focused on the cultivation, processing and sale of high-CBD and high-CBG hemp seeds. Production is based in two leased greenhouses, each measuring 0.5 decares, and a separate facility used for storage, sorting and packaging of the seeds. The controlled greenhouse environment allows the company to maintain consistent quality and output, independent of external weather conditions.

Each cultivation cycle typically spans 4–5 months, depending on the seed variety, operational efficiency and environmental adjustments. On average, each greenhouse produces between 400,000 and 500,000 seeds per harvest, depending on seed type, staff efficiency and the operational management of the facilities.

Corporate identifiers: Balkan Cannabis Seed and Consulting Ltd., a Bulgarian limited liability company; EIK 206825634; registered in February 2022; registered office 103 Gotse Delchev Street, Floor 1, Triaditsa district, Sofia 1404, Bulgaria.

Core products

Variety	CBD content	Flowering
FENOM	up to 24%	8–9 weeks
FENOMAX	up to 24%	8–9 weeks
FENOCHEESE	up to 20%	7–8 weeks
FENOQUEEN	up to 18%	7–8 weeks
FENOSWISS	up to 16%	7–8 weeks
FENOJOY	10–13%	7–8 weeks
FENOMOON	8%	7–8 weeks

Organisational structure

The team combines specialised roles and efficient processes to support both the cultivation of hemp seeds and the delivery of consulting services. The managing director, Nikolay Mitkov Mitkov, oversees the company’s strategic direction, key decisions, relationships with partners and clients, and overall governance.

Role	Headcount	Responsibilities
Director	1	Strategy, key decisions, partner and client relationships, governance
Operational manager	1	Daily activities, interdepartmental collaboration, production and sales goals
Sales manager	1	New clients, contract negotiation, long-term relationships with key customers across Europe, consulting services
Agronomists	2	Lead cultivation, monitor plant health, analyse performance data, optimise production
Agronomist assistants	2	Daily monitoring, data collection and routine greenhouse tasks
Workers	9	Soil preparation, planting, plant care, harvesting and primary seed processing
Cleaner	1	Hygiene and sanitary compliance at the production facilities
Security guards	2	Safety of the premises, employees and equipment

Market position

Balkan Cannabis is a relatively small player in a rapidly growing industry. It has found its niche in the European market through the cultivation and sale of high-CBD and high-CBG seed varieties. Its ability to establish and maintain strong client relationships — seemingly facilitated by the personal connections of its director and owners — has enabled it to grow rapidly despite its scale. Modern greenhouse methods allow it to produce seeds of consistent quality for a diverse client base, and it operates as a reliable supplier with a reputation for high-quality products tailored to market demands.