SEATTLE, Wa., April 04, 2018 (GLOBE NEWSWIRE) -- CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article discussing FinCanna Capital Corp. (CSE:CALI) (OTCQB:FNNZF) and their investment in Cultivation Technologies Inc. (“CTI”).
The cannabis industry is rapidly growing throughout the United States, but there’s little doubt that California will see the next big ‘green rush’. With nearly 40 million residents, the country’s most populous state legalized the medical use of cannabis back in 1996 and it has become an ingrained part of the culture. Investors may want to focus their attention on companies targeting the state’s industry given the vote to legalize cannabis during last year’s election.
FinCanna Capital Corp. (CSE:CALI) (OTCQB:FNNZF) has a flagship investment in Cultivation Technologies Inc. (“CTI”), which owns 6 acres in Coachella, CA that it plans to develop into a cultivation center, extraction and manufacturing facilities, a testing lab, a distribution hub, and a centralized processing center for licensed medical cannabis. In addition, the company has several other royalty agreements in place targeting various parts of the industry.
California’s Burgeoning Market
The cannabis industry is projected to exceed $50 billion by 2026, according to Cowen & Co., driven by the legalization of medical and adult-use cannabis throughout the country. Arcview Market Research believes that the state could see upwards of $2.6 billion in annual revenue by 2020, which would make it larger than Colorado’s $1.5 billion market and Florida’s $1.6 billion market, and one of the largest single legal markets in the world.
While California was the first state to establish laws in support of cannabis, legalizing the plant for licensed medical use back in 1996, the majority of cultivators and collectives have been operating under the radar. Regulators have begun sending cease-and-desist letters to unlicensed operators, including advertising companies that have continued supporting unlicensed operators. In addition to these efforts, a new amendment aims to reduce price disparities between legal and illegal operations by suspending cannabis taxes until 2020, all positive signals for FinCanna’s royalty business model.
Cultivation Technologies Operations
Cultivation Technologies announced that it is directly operating its interim medical cannabis extraction facility on January 15, 2018 and plans to directly operate its permanent facility to be built on its 6-acre site in Coachella. Upon taking control of the extraction facility, CTI gained the rights to 100% of its production capacity and accordingly, is quickly advancing towards commercialization and ramping revenue at the Facility from which FinCanna is entitled to receive 50% of the profits.
In a March update, CTI announced that it began scaling up these operations. After acquiring state temporary licenses and key accounts for contract manufacturing and distribution, the company hired an experienced sales team consisting of a sales director, two full-time sales managers, and three independent sales contractors. The company further pointed out that the state was taking action to shut down unlicensed producers, which should support the market for licensed producers like CTI.
Cultivation Technologies’ extraction facility is capable of processing an estimated 6,000 pounds of biomass per month, which translates to about 3.7 million grams of raw oil per year. The company has the ability to add an additional extraction machine and fractional distillation and winterization equipment that would increase that figure by 3,000 pounds of biomass per month and could scale to 100,000 grams of finished product per week.
Other Opportunities in the Works
FinCanna’s flagship project may be Cultivation Technologies, but the management team has started to expand beyond this campus into other areas of the industry.
On February 6, the company entered into a royalty agreement with Green Compliance Inc., which is located in Fort Lauderdale, Florida. The state-of-the-art enterprise compliance and point-of-sale software provider helps licensed medical dispensaries and cultivators comply with both the Health Insurance Portability and Accountability Act (“HIPAA”) and State Laws by ensuring that patient data is confidential and protected from security breaches. The company has commenced sales in the US and its target market is every licensed operating dispensary and cultivator in the states which have passed laws legalizing medical cannabis - currently 29 states and Washington DC.
A couple weeks later, the company signed a binding term sheet with Gram Co Holdings LLC, a California-based cannabinoid research and refinement facility focused on the medical cannabis industry. After leasing a facility in Oakland, the company plans to finish retrofitting the facility into a large, state-of-the-art medical cannabis extraction laboratory, which is expected to be operational by the end of third quarter of this year. Gram Co plans to become a premier producer of cannabinoid concentrates as well as provider of white label services.
Both of these agreements could generate positive royalty income to FinCanna, while providing diversified exposure to information technology and extraction segments of the cannabis industry.
Please follow the link to read the full article: http://www.cannabisfn.com/fincanna-capital…ation-california/
For more information and to read the company’s statement regarding potential risks associated with FinCanna, its business and its shares, visit www.fincannacapital.com
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