A trend seems to be gaining momentum in the U.S. as the states become more open to marijuana legalization. Alongside this trend comes the possibility of historic opportunities in the form of early-stage profits gained from the marijuana industry.
Projections for the annual growth rate of the international licensed marijuana market are noteworthy, according to Ameri Research analysts, cast at 21.1%. As for the projected value of global industry sales – $63.5 billion by 2024.
According to Fortune magazine, “Sales of legal cannabis in North America are growing even faster than experts predicted they would.”
It’s the kind of growth that attracts investors who are on the lookout for high-upside opportunities. Most of these investors choose to support production-based cannabis companies in their early stages. Investments in these companies often comes packaged in both potential and high risk.
But, what if there was a smarter channel for investing in the global cannabis boom? The good news is that this channel does exist, in the form of a company whose business model is truly unique.
FinCanna Capital Corp. (CSE: CALI ; OTC: FNNZF), one of the first royalty companies focused on licensed medical marijuana in the U.S., embodies this smarter investment opportunity. Within the United States, FinCanna Capital Corp (CSE: CALI ; OTC: FNNZF) is focused on funding best-in-class licensed MMJ companies in California, receiving a percentage of the companies’ revenues in exchange. They are led by an experienced team of proven finance and MMJ industry “heavyweights,” with deals announced for three significant royalty investments and a healthy roster of potential future projects.
What Royalty Companies Offer: A Proven Business Model
The success of a royalty company structure in the provision of industry financing is owed, in large part, to the mutual advantages it offers both up-and-coming companies and investors. This has been evident in the mining industry in particular.
Through a company like FinCanna Capital, investors gain access to investments they may not have been privy to otherwise. FinCanna Capital does the work of thorough investigation, selecting from among the best-in-class companies what the management team believes are the strongest candidates for success.
An additional benefit for investors choosing FinCanna Capital Corp.(CSE: CALI ; OTC: FNNZF) is the opportunity for diversified investments versus gambling on a higher-risk, single emerging marijuana producer. More diversification is forthcoming as the company makes plans for investing in best-in-class projects that extend beyond production in the licensed MMJ industry.
FinCanna’s Flagship Royalty Project: An Indoor Six-Acre Facility Dedicated to Licensed MMJ Production
FinCanna Capital and Cultivation Technologies, Inc. (CTI.) teamed up to create the flagship project in Coachella, California. A team of experts with representatives from the medical cannabis sector, engineering, Fortune 150 agriculture, law and technology make up CTI. The flagship project includes the financing and construction of a 111,500 square foot indoor facility to be built on six acres that will nurture innovative techniques in the quest for best-in-class solutions.
FinCanna Capital is helping to fund CTI’s planned 111,500 sq. ft. Coachella Project
In the agreement cast between the companies, CTI will receive funding in exchange for paying FinCanna Capital Corp (CSE: CALI ; OTC: FNNZF) a royalty of 14% from their Coachella Project revenues. CTI projects the extraction facility on its completed Coachella Project will be able to process 30,000 to 50,000 pounds of biomass monthly, or the equivalent of between 18 and 30 million grams of raw oil annually.
There are several other attractive components to the royalty arrangement between FinCanna and CTI. Through the royalty agreement, FinCanna gains rights to finance the next two of CTI’s MMJ facility projects – under the same terms as the flagship project.
CTI has also established an interim facility on the property for medical cannabis extraction to operate until their Coachella Project is up and running, allowing for production of licensed MMJ product ahead of the completion of their permanent facility.
Extraction machine in the interim facility on the Coachella property
The interim facility opened operations last October under management by a third-party, whereby CTI was entitled to only 20% of production capacity. However, thanks to changes in California’s regulation of marijuana, effective January 1, CTI was able to assume full operation responsibilities and 100% production capacity. FinCanna is entitled to 50% of the profits from this interim facility.
The interim facility has capabilities of processing up to 6,000 pounds of biomass each month, which can produce approximately 3.7 million grams of raw cannabis oil each year – with room for facility expansion, if need be.
FinCanna’s Second Royalty Investment: A State-of-the-Art Software Solution for Medical Cannabis
Green Compliance provides licensed MMJ cultivators and dispensaries with cutting edge enterprise HIPAA compliance, methods of ensuring patient confidentiality through proper handling of sensitive data, and a software for point-of-sale transactions, called ezGreen.
Green Compliance is already engaging in sales in the U.S., targeting licensed operating cultivators and dispensary within the 29 states where medical cannabis is legal, plus Washington, D.C. Green Compliance has secured an exclusive licensing and support agreement with one of the United State’s leading point of care and dispensing software solutions dedicated to the workers compensation vertical in the pharmaceutical industry and a proven HIPAA compliant solution – Automated Healthcare Solutions (AHCS).
FinCanna’s role in this royalty agreement is to fund $3 million in the form of tranches by September 15 in exchange for a perpetual royalty equivalent to 10% of Green Compliance’s consolidated gross revenues, subject to certain buy-back options.
FinCanna Hones in on California: The Largest Cannabis Market in North America
There is strategy behind Fincanna Capital Corp’s (CSE: CALI ; OTC: FNNZF) initial focus on the California cannabis market. Globally speaking, California’s economy ranks the sixth-largest, while its medical marijuana market ranks the largest in North America.
Arcview Group analysts predict that, by 2020, California’s legal marijuana industry will have grown to $6.5 billion – representing a compound annual growth rate of 21.1% – in addition to an estimated $1 billion generated in tax revenue.
Back in November of 2016, California passed the Adult Use of Cannabis Act, which, in tandem with the new regulations passed this year, means that participation in the State-legal marijuana market will be limited to licensed permit holders. The result: emerging marijuana production companies face significant barriers entering the market, raising the degree of risk for individual investors.
Again, this is where FinCanna Capital Corp.(CSE: CALI ; OTC: FNNZF) comes in, offering investors a safer and smarter in-road to the marijuana boom as one of the pioneers among royalty companies in the U.S. licensed MMJ industry.
FinCanna Capital Corp. (CSE: CALI ; OTC: FNNZF) is Led by a Proven and Diverse Group of Experts
The strength of any company’s leadership team is one of the greatest indicators of success. With an industry in the throes of fast-paced growth – as we’re seeing in the marijuana industry – the best scenario for savvy investors is finding those companies whose management teams are experienced and have a track record for success to put their money behind.
Here is a brief review of the FinCanna Capital Corp. roster of team leadership:
Andriyko Herchak, CPA, CA – President & CEO, Director
- More than 20 years of executive leadership experience among publicly traded companies.
- Former CFO of an international sales and marketing company generated $1.4 billion in yearly sales.
- Former CFO of Canadian mineral exploration and development company that succeeded in raising C$100 million in equity financings before being sold for C$650 million cash.
Robert Scott, CPA, CA, CFA – Chief Financial Officer
- More than 20 years of corporate finance experience, including merchant banking experience and commercial banking experience with a major Canadian bank.
- Management team and board member for multiple publicly traded companies in Canada.
- Secured TSX Venture Exchange listings for several companies.
Morris L. Reid – Director
- Corporate and political strategist with global recognition based in Washington, D.C and London.
- Partner at Mercury, a high-stakes public strategy firm representing the most successful companies worldwide, engaged in leading governments, advocacy groups, NGOs, political parties, and high-profile public and political figures.
- More than 15 years advising experience with government officials, high-profile individuals and corporate executives.
- Global advisor to prime ministers, presidents and royal families.
Jeffrey Tindale – Director
- More than 15 years of merchant banking experience and corporate advisory services.
- Solid background in issues of finance, corporate governance, acquisitions and mergers.
Gaynell Rogers – Advisor to the Board
- An expert voice among the medical marijuana industry in the U.S.
- Highly respected expert on issues of media and publicity; survived cancer two times before entering the industry.
- Senior consultant to the largest U.S. based medical marijuana dispensary and industry model, Harborside.
- Former head of Feature Film Publicity for Pixar and former Senior Publicist for Lucasfilm Ltd.
Miguel Motta – Advisor to the Board
- President & CEO of CTI.
- Former Monsanto executive and leader of global strategy for a $1 billion portfolio of agricultural products.
- Former President & CEO for SGB Inc., a company backed by venture capital.
Adding to this impressive group of leaders is the outstanding board of directors for FinCanna’s flagship royalty investment, Cultivation Technologies Inc. (CTI), including Irv Einhorn.
Mr. Einhorn brings to the team 40+ years of compliance-related experience. He previously served at the regional office in Los Angeles as Regional Administrator of the Securities and Exchange Commission, working with his team to implement SEC regulations and law enforcement mandates within the Western United States.
7 Reasons Investors Can Play the Legal Marijuana Boom Smarter with FinCanna Capital Corp. (CSE: CALI ;OTC: FNNZF)
1. It stands among the first of its kind in royalty companies.
FinCanna Capital Corp. (CSE: CALI ; OTC: FNNZF) is a pioneer among royalty companies. The company combines its vision with a deep well of expertise and experience in the industry to take hold of opportunities at early stages of growth in the legal cannabis industry.
2. Its particular business model offers extensive benefits to investors.
Investors can have a sense of confidence in the work FinCanna does of assessing the companies with which it enters into royalty agreements before backing these companies with their dollars. The model itself also allows for a diversification that may be attractive to investors.
3. Company investors receive greater access to best-in-class options.
The unique business model of FinCanna Capital Corp. (CSE: CALI ; OTC: FNNZF) opens doors for investors to best-in-class private companies that otherwise may not have been available as individual investors.
4. The company’s first two partnerships have shown extraordinary potential.
Between the planned flagship facility in Coachella, Southern California and the royalty agreement with Green Compliance, FinCanna is positioned to receive 14% production royalties from CTI and a 10% royalty from a state-of-the-art software company.
5. The company is actively engaged in strategic moves to build even more partnerships.
FinCanna is racing to increase its partnerships. With two successful partnerships secured, the company is looking at a number of additional attractive projects.
6. The company’s focus on the state of California opens up exciting opportunities in a large market.
FinCanna recognizes the vast potential of the California licensed medical cannabis market, and with it, the unique opportunity to provide an in-road to investors and producers as new state regulations limit entry for new producers.
The most recent California development, for example, was an announcement mid-February of a binding term sheet FinCanna signed with extraction company Gram Co Holdings LLC. – a company that brings extensive extraction experience to the table. The term sheet calls for FinCanna to fund $3 million in tranches in exchange for a tiered corporate royalty ranging between 7.5% and 14% of Gram Co’s revenues. Gram Co. is in the process of retrofitting an extraction facility leased in Oakland to create a state-of-the-art licensed MMJ extraction laboratory.
7. FinCanna Capital Corp. is led by a proven team of diverse experts.
FinCanna Capital Corp. (CSE: CALI ; OTC: FNNZF) leadership includes an impressive roster of “heavyweights” across multiple relevant industries, with successful track records in medical marijuana, finance, business.
All in all, FinCanna Capital Corp. meets investors on multiple levels, opening up safer and potentially more sound investments in the licensed medical cannabis industry, offering an innovative and diverse business model, providing excellent proven leadership, and presenting enticing new growth opportunities.
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