FinCanna benefits from investing in licensed medical cannabis businesses
By 2025, US cannabis sales are estimated to reach US$24.1 billion (a CAGR of 16%), with California being the sales leader both by volume and revenue. California is recognized as a global leader of the marijuana market. It has the largest cannabis market in North America, representing over 30% of legal US cannabis sales in 2016. California is not only the largest state economy in the US; it is also the fifth largest economy in the world.
Medical cannabis is becoming legalized rapidly on a global scale, which in turn has driven research initiatives to further discover medicinal benefits. With around 120 trials underway in Israel, the role of medical cannabis is sure to expand as cures and treatments are discovered and proven.
FinCanna Capital Corp. (CSE: CALI | OTCQB: FNNZF) is a royalty finance company uniquely focused on investing in licensed medical cannabis businesses. FinCanna is confident that its investors and its portfolio of companies will benefit from this focus.
FinCanna invests into Cultivation Technologies Inc. thereby growing access to the medical cannabis market in California
Cultivation Technologies Inc. (“CTI”) is FinCanna’s recent investment in California. CTI provides infrastructure, technology, and branding to the licensed medical cannabis industry. CTI has executed an agreement with Phoenix Tears LLC to be the exclusive manufacturer and distributor of official Phoenix Tears THC-based products in California. Phoenix Tears has supported more than 200,000 individuals through its cannabis brands and products since its inception in 2010. CTI is working to maximize the commercial potential of its extraction facility, which can process an estimated 6,000 pounds of biomass per month, which translates to approximately 3.7 million grams of raw cannabis oil annually. FinCanna is entitled to receive 50% of the profits from the facility.
Andriyko Herchak, President and CEO of FinCanna Capital, stated: “This agreement represents a significant step forward for CTI as they continue to build out their manufacturing, distribution and marketing businesses of cannabis and cannabis-related products. This agreement continues to validate our investment in CTI, and gives our shareholders growing access to the burgeoning medical cannabis market in California.”
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FinCanna’s Refined Resin Technologies Inc. investment
FinCanna have also invested in Refined Resin Technologies Inc. (“Refined Resin”) of Oakland, California. Refined Resin is retrofitting a legally zoned, large, state-of-the-art medical cannabis extraction laboratory, in Oakland, and is targeting to be in operation by late 2018 or early 2019. Royalty payments to FinCanna from Refined Resin are equal to 11.75% on the first US$160 million of annual revenues payable subject to certain buy-back options. Refined Resins intention is to become a premier producer of bulk quantities of THC distillate and various high value concentrates produced via hydrocarbon-based solvent extraction.
FinCanna CEO Andriyko Herchak states: “We are very pleased to initiate funding of Refined Resin’s highly detailed three phase development strategy that will culminate in full commercialization.”
The use and acceptance of medicinal cannabis continues to evolve, as shown by the growing number of US states (30) now permitting use for specific medical indications. There’s a growing body of research supporting marijuana’s use for medical purposes. As the cannabis sector grows, so will FinCanna Capital. The Company’s vision is to be the capital partner of choice for high growth, best-in-class businesses focused on the licensed U.S. medical cannabis industry. One to watch.
Matthew Bohlsen holds a Graduate Diploma in Applied Finance and Investment (similar to CFA), and a Graduate Diploma in Financial Planning. He has 30 years ... <Read more about Matthew Bohlsen>