FinCanna Capitalizes on CA’s Burgeoning Cannabis Industry
Ryan Allway
September 15th, 2017
Exclusive, News
The U.S. cannabis industry is projected to reach $50 billion by 2026, according to Cowen & Co., driven by the legalization of medicinal and adult use marijuana in several states. Despite these massive growth rates, federal prohibition has prevented large agricultural, pharmaceutical, and tobacco companies from participating in the upside. The flip side of the problem is that emerging cannabis companies can’t access capital through traditional banks and capital markets.
FinCanna Capital Corp. aims to capitalize on these dynamics by providing access to capital in exchange for royalties from licensed medical cannabis operations. In July, the company announced a deal with Astar Minerals Ltd. to complete a reverse-takeover and become a publicly-traded company in Canada. Investors interested in the cannabis industry may want to keep a close eye on these developments given the near-term potential to invest.
Click Here: Sign-Up to Learn How to Invest Early in FinCanna
California’s Burgeoning Market
California is the sixth largest economy in the world and it’s poised to become the largest legal cannabis market in North America. Analysts estimate that the state’s annual revenue will reach $6.5 billion by 2020, while generating upwards of $1 billion in tax revenue. In fact, the state’s market could be twice the size of Canada’s entire national market, making it the largest cannabis market for investors interested in the space.
After becoming the first state to legalize medical cannabis in 1996, the state developed into a sophisticated consumer marketplace over the years. The legislature passed the Medical Cannabis Regulation and Safety Act in 2016 and the Adult Use of Marijuana Act in November 2016. State regulations will come into effect in January 2018 for both medical and adult use, which could significantly disrupt existing supply and demand dynamics.
There are several large barriers to entry for new companies entering California’s cannabis industry. In addition to the high capital costs for compliant indoor facilities, companies must obtain local approvals in a process that can take a year or more as well as meet rigorous pesticide and testing standards. These constraints could keep supply levels low over the coming years at a time when consumer demand is expected to increase.
Click Here: Sign-Up to Learn How to Invest Early in FinCanna
The Flagship Coachella Campus
FinCanna’s flagship investment is in Cultivation Technologies Inc., a best in class operating partner, on a fully-entitled 111,500 square foot licensed medical cannabis facility to be constructed on six acres of land in Coachella, Southern California. The facility is expected to be one of the largest facilities of its kind in the largest cannabis market in North America, making it a generational, time-limited, opportunity for investors interested in the space.
The facility is expected to include an 81,600 square foot cultivation center, 9,000 square foot extraction and manufacturing center, and 20,900 square feet for testing, distribution, processing, and other activities. The indoor multi-tier grow systems will produce ultra-premium, chemical/pesticide-free product with an expected 2.5x yield compared to conventional technologies. Meanwhile, the extraction facility will enable white-label production in a programmable, repeatable, and scalable system.
The company plans to finalize the project financing and break ground during the third quarter of 2017 and commence production approximately 10 months later. The team has already secured a development agreement and conditional use permit and is in the process of obtaining the building permits to begin construction.
Innovative Business Model
FinCanna is investing C$14 million into Cultivation Technologies Inc. in return for royalty payments, which will be the greater of 10% of CTI’s revenue or 20% of CTI’s EBITDA from the Coachella Campus. In addition to these capital investments, the company has the right to finance CTI’s next two licensed medical cannabis facility projects on the same terms as Coachella Campus. The second project has already been identified in Colusa, Northern California on 10.78 acres under a CTI option agreement.
Looking Ahead
FinCanna Capital Corp. aims to capitalize on the fragmented U.S. licensed medical cannabis industry by providing access to capital in exchange for royalty payments from licensed medical cannabis operations. In California, the company is using a compelling royalty-based business model to invest in an operating leader that is developing very significant, state-of-the-art licensed medical cannabis projects.
Click Here: Sign-Up to Learn How to Invest Early in FinCanna
FinCanna Disclaimer – http://fincannacapital.com/relevant-disclaimers/
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
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.
Search CannabisFN
Press Coverage
Psychedelics Index
Top Videos
Rob is the co-founding President of Pelorus Equity Group and has more than 18 years of experience in the real estate finance industry. Since the formation of Pelorus in 2010, he has raised more than $175,000,000 in secured real estate transactions. Rob’s primary role at Pelorus Equity Group is the development of strategic alliances with […]
Watch CFN Media’s exclusive three part interview with Paul Rosen, one of the most active and diversified investors in the emerging cannabis industry. Paul gives his insights on the global cannabis industry and discusses his new endeavors. Become a CFN Media Client Paul Rosen is a noted career entrepreneur and management consultant. Over the last […]
Xtraction Services provides state-of-the-art, fully-automated, supercritical CO2 extraction machines with on-site staffing at no upfront cost, and a simple volume-based pricing model.
AYR Strategies was created as a special purpose acquisition corporation incorporated under the laws of the Province of Ontario that acquired five subsidiaries.
Network Partners
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.
Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer
