FinCanna Capital Corp. (CSE: CALI), which raised approximately C$14m before commencing trading on the CSE on December 29, 2017, reiterates its business objectives for the benefit of its new shareholders.
FinCanna is a royalty company for the licensed medical cannabis industry which invests in sizable and scalable best-in-class businesses. The Company’s business objective is to provide capital solutions to top-tier companies with large scale potential and with highly skilled and experienced operators in exchange for a royalty based on a percentage of revenues.
FinCanna is focussed on California, the largest legal medical cannabis market in North America and the first state to legalize medical cannabis in 1996. FinCanna invests only in companies that operate ethically and in full compliance with all state laws and local regulations in the medical cannabis sector.
FinCanna’s flagship investment is in Cultivation Technologies Inc. (“CTI”) pursuant to a Funding Agreement dated April 20, 2017 between FinCanna and CTI (the “Funding Agreement”). CTI plans to construct in phases, a 111,500 ft2 facility on the Coachella Property, a six-acre property which it owns outright in Coachella, California. This will include an approximately 81,600 ft2 cultivation center to vertically grow indoor, ultra-premium medical cannabis in a controlled atmosphere without the use of chemical pesticides, a 9,000 ft2 extraction and manufacturing center and an additional 26,300 ft2 for testing, distribution, nursery, centralized processing and offices (the “Coachella Facility”).
CTI currently holds local permits for the Coachella Property that allow for construction of the project and permit CTI to conduct medical cannabis operations on-site, subject to regulatory requirements. Pursuant to the Funding Agreement, FinCanna has agreed to fund certain amounts of capital to CTI to purchase a royalty of 10% of CTI’s revenues.
CTI has also established an interim medical cannabis extraction facility (the “Interim Facility”) on the Coachella Property in accordance with CTI’s Conditional Use Permit. This lab will produce medical extracts for sale, is currently in operation, and is expected to remain in operation during the construction of the Coachella Facility. Currently, the Interim Facility can process an estimated 6,000 pounds of biomass per month which can produce approximately 3.7 million grams of raw oil per year. FinCanna is entitled to receive 50% of the profits of CTI which are derived from the Interim Facility.
FinCanna remains committed to its business objective of building its portfolio of investments by sourcing and funding additional top-tier companies and projects operating in the licensed medical cannabis sector in exchange for royalties on revenues.
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