A Look at California’s Premier 111,500 Sq. Ft. Cultivation Campus


Ryan Allway

October 5th, 2017

Exclusive, News, Top News


California’s cannabis industry could reach $5 billion next year after Proposition 64 goes into effect, but there aren’t many companies positioned to capitalize on the market. FinCanna Capital Corp. and its initial partner, Cultivation Technologies Inc., are among the leading opportunities in the space with plans to build a 111,500 sq. ft. legal medical cannabis campus that could become a significant leader in the burgeoning industry.

For more information, sign-up for an alert when the company goes public and download their investor presentation here: http://promo.cfnmedia.com/fincanna

California’s Burgeoning Market

California could be on the verge of creating a $5 billion industry overnight after voters approved Proposition 64 last November, according to the University of California’s Agricultural Issues Center. The study also estimated that the industry could create more than 1,200 jobs in the testing and handling of the plant, and boost the state’s tourism revenue as visitors pour in from states where the drug isn’t legal. In Colorado, an estimated 85% of tourists came to the state to consume marijuana.

The state could become the single largest market for legal cannabis in North America where sales are expected to grow at a 27% compound annual growth rate to $22.6 billion by 2021, according to Arcview Market Research. With an illicit market worth more than $50 billion in 2016, there is a significant opportunity for states to capture and regulate a meaningful portion of the illicit market and California’s legalization efforts could prove a turning point.

The Leading Cultivation Project

Cultivation Technologies Inc. (“CTI”) plans to build a fully-entitled 111,500 sq. ft. facility on six acres in Coachella, California. The planned campus will be one of the largest of its kind with 81,600 sq. ft. of cultivation space and a 9,000 sq. ft. extraction and manufacturing center. The indoor controlled environment and multi-tier grow system is designed to provide 2.5x the yield of competing technologies while generating an ultra-premium and chemical-pesticide-free product.

The project is being spearheaded by a team of experts coming from Fortune 150 agriculture, law, medical cannabis, plant genomics, technology, and engineering companies. This management team has a demonstrated ability to successfully navigate permitting in California, while incorporating multiple proprietary systems and a fully-integrated supply chain in the planned facility. The team is uniquely qualified to execute on its vision in Coachella and in future project sites.

At the same time, FinCanna’s President and CEO Andriyko Herchak, CPA, CA, has over 20 years of leadership experience with publicly traded companies, having served as the former CFO of a Canadian company sold for C$650 million in a cash transaction. Chief Financial Officer Robert Scott, CPA, CA, CFA, also has over 20 years of corporate finance experience, including merchant and commercial banking experience.

For more information, sign-up for an alert when the company goes public and download their investor presentation here: http://promo.cfnmedia.com/fincanna

FinCanna’s Unique Exposure

FinCanna Capital Corp. specializes in royalty financing for licensed medical cannabis companies and is planning to go public in Canada over the near-term through a reverse takeover transaction with Astar Minerals Ltd. (TSX-V: TAR). Under the terms of FinCanna’s agreement with Cultivation Technologies Inc., FinCanna will earn a royalty of 10% of revenue from CTI’s future Coachella Campus project. The company also has the right to finance CTI’s next two projects on the same terms, which could open the door to more revenue opportunities.

The royalty business model is very attractive for FinCanna since it’s both high-margin and extremely scalable across multiple licensed medical producers. As the industry matures, the company could also have a potential built-in exit strategy as banks, Big Pharma, agriculture, and tobacco companies look for easy ways to buy their way into the market. Royalty companies could provide an ideal way to build exposure to top-tier companies in the licensed medical cannabis sector.

See a recent interview with FinCanna Capital CEO Andriyko Herchak.

Looking Ahead

FinCanna Capital Corp. and its initial partner, Cultivation Technologies Inc., are among the leading opportunities in California’s legal medical cannabis industry with plans to build a 111,500 sq. ft. cannabis campus.

For more information, sign-up for an alert when the company goes public and download their investor presentation here: http://promo.cfnmedia.com/fincanna

Important disclaimer information: http://fincannacapital.com/relevant-disclaimers/

Ryan Allway

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


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