FinCanna is one of the first royalty companies focused on licensed medical marijuana in the U.S., and represents a smarter investment opportunity. The company combines its extensive investment expertise, and industry experience to benefit its investors and portfolio companies. FinCanna Capital Corp. is listed on the CSE in Canada (CSE:CALI) and on the OTCQB (OTCQB: FNNZF) in the United States.
Royalty Model
FinCanna finances top tier companies in the medical Cannabis industry in exchange for a royalty. The company seeks to invest in best-in-class businesses by aligning the business and financial interests of existing owners and operators with those of FinCanna.
FinCanna’s royalty financing offering is an alternative or complement to debt and equity financing which appears to work perfectly in this industry right now. It provides the advantage of allowing investees to maintain financial flexibility and control of their business as opposed to entering into arrangements that may include restrictive debt structures or giving up an ownership stake.
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.
FinCanna is led by an experienced team of proven finance and MMJ industry “titans,” with deals announced for three significant royalty investments and a healthy roster of potential future projects.
Why is FinCanna focused on Licensed Medical Cannabis? Because 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 is focused on this sector and is confident that its investors and portfolio companies will benefit from this focus.
According to Arcview Market Research and partner BDS Analytics, worldwide spending on legal cannabis is expected to hit $57B by 2027. North America will continue to be the leader in legal cannabis buyers, as the $9.2B spent in 2017 is expected to grow to $47.3B by 2027.
Research at the University of Georgia has found a link between medical cannabis and the decrease in opioid prescriptions in the states that permit dispensaries. The findings show from 2010 to 2015, prescriptions filled for all opioids decreased by 2.11M. As more cures and treatments are discovered and proven, the role of medical cannabis is sure to expand.
The U.S. Cannabis Industry and California:
- Recent legislation in California is predicted to have a significant positive impact on U.S. licensed cannabis sales. Tom Adams of BDS Analytics expects national cannabis sales to increase from $9B (2017) to $11B in 2018. By 2021, sales are expected to reach $21B, with California being the sales leader both by volume and revenue;
- The medical market is projected to grow at 11.8% CAGR through 2025, growing from $5.1B in 2017 to an estimated $12.5B in 2025;
- California not only has the largest state economy in the U.S., and also fifth largest economy in the world. With licensed cannabis sales totaling approximately $2.5B in 2017, California is recognized as a global leader of the marijuana market.
FinCanna is the only cannabis royalty company that is exclusively focused on the California markets.
An additional benefit for investors choosing FinCanna Capital Corp. (CSE: CALI ; OTCQB: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 First Royalty Project: An Indoor Six-Acre Facility Dedicated to Licensed MMJ Production
FinCanna’s first investment is with Cultivation Technologies Inc. (“CTI”). FinCanna Capital and Cultivation Technologies, Inc. (CTI.) teamed up to create the flagship project in Coachella, California. CTI is made up of A team of experts with representatives from the medical cannabis sector, engineering, Fortune 150 agriculture, law and technology. 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 is entitled to complete its funding to CTI in exchange for a Royalty of 14% of CTI’s revenues from its Coachella Project. In addition, FinCanna has the right to finance CTI’s next 2 licensed cannabis facility projects on the same terms as the Coachella Project. FinCanna has a secured loan to CTI of US $6M earning interest at 20% per annum.
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.
The Interim Facility can process up to 6,000 pounds of biomass per month which canproduce approximately 3.7M grams of raw oil per year, with room for expansion. FinCanna is entitled to receive 50% of the profits from the Interim Facility.
It is expected that upon completion, the Coachella Project will be able to process30,000 to 50,000 pounds of biomass per month, or the equivalent of 18M grams to30M grams of raw oil per year.
FinCanna’s Second Royalty Investment: A State-of-the-Art Software Solution for Medical Cannabis
The second of FinCanna Capital Corp’s (CSE: CALI ; OTCQB: FNNZF) royalty investments is an agreement struck with Green Compliance, Inc.
Green Compliance offers a state-of-the-art enterprise compliance and point-of-sale software solution (“ezGreen”) for licensed medical cannabis dispensaries and cultivators. Green Compliance developed the software with Automated Healthcare Solutions (“AHCS”) and has an exclusive licensing and support agreement with them.
Green Compliance has commenced sales in the United States, 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, D.C.
Under the Royalty Agreement, FinCanna will fund US$3M in tranches by September 15, 2018. In return, FinCanna will receive a perpetual royalty equal to 10% of consolidated gross revenues of Green Compliance, subject to certain buy-back options.
Recent Developments
June 19, 2018– FinCanna Investee ezGreen Compliance On-Boards Multiple Customers across California, the largest Cannabis market in North America
Andriyko Herchak, President and CEO of FinCanna, states, “ezGreen has made excellent progress in a very short amount of time in securing partnerships and putting itself in position to become an industry leader in the U.S. cannabis compliance category. With its proven pharma-grade compliance solution, we believe they will continue to gain momentum and establish themselves as a leader in their category.”
June 7, 2018– FinCanna Flagship Investment, CTI, Reaches First $1M USD in Cannabis Extraction Revenue
“We are very pleased to see the sales performance of CTI which has translated into its first US$1M in revenue at only a fraction of its capacity,” said Andriyko Herchak, President and CEO of FinCanna Capital. “With its sales team in place building out an ever-expanding distribution footprint, and its manufacturing ramping up we see a bright future as we move into the second half of 2018.”
Read More News on FinCanna From the Company Website
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.
These two partnerships already show extraordinary potential and FinCanna (CSE: CALI) (OTCQB: FNNZF) is actively engaged in strategic moves to build even more partnerships in this rapidly growing industry.
Take a few minutes to watch their CEO, Andriyko Herchak, discuss their flagship asset during an interview with Capital Ideas TV.
Make sure to start your research now and learn more from the company website.
The foregoing includes forward-looking statements. Such statements, and specifically the statement regarding the expected level of biomass production at the Coachella Facility, are based on the Company’s current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, all of which are beyond the Company’s control.
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search for BDSM and I’ll leave it to the reader to do your own research on that topic. The BDMS we’re talking about here is based in Denver, CO and has approximately 490 full time employees according to information made public by the company. As their URL 
Way back in March of 2012, BDMS stock value peaked at $23.03, but hasn’t reached any higher than $18.61 in the past 1-year period (52-week range is $6.01 to $19.89). Currently it sits at $7.00, on the bottom of what looks like a trough, and volume is actually up about 14-fold over average to 15,370 (average was 1040). Market Cap is 13.11M and EPS is -$0.81.
OTC:CRYO (American CryoStem Corporation), based in Eatontown, NJ, with partner laboratories in the U.S., Japan and China, is a firm engaged in developing, bringing to market, standardizing and licensing technologies, materials and services geared at adipose tissue (aka body fat) regenerative and personalized medicine. In this capacity, CRYO is focused on research, analysis, transfer, storage, sterilization, viability and other services in the over-arching adipose tissues field. They also claim to have a strategic portfolio of intellectual property (IP) which they say will support their pipeline of stem cell and applications and biologic products. CRYO was founded in 2008.
So long story short, this company is in the business of stem cell treatments and therapies. What does that mean and how does it compare to their peers? Well, they just released their 2017 Q3 earnings report and from what we can see, most indicators fare pretty well for the future. In summary, revenues are up slightly, YOY revenue growth is about 173%, earnings are positive for the first time in several cycles as is net margin.
