Funding the Production of Ultra Premium Cannabis Products in North America’s Largest Market
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FinCanna Capital Corp (CSE:CALI, OTCQB:FNNZF) is a royalty finance company uniquely focused on investing in licensed cannabis businesses in the US with a focus on California, the largest market in North America. As operators seek funding and big pharma, big agriculture and big tobacco await further legalization, FinCanna aims to capitalize on this market opportunity by providing access to capital for companies operating in the licensed cannabis sector in exchange for royalty payments based on a percentage of their revenues. The business model is also very scalable since there are no operational components.
For portfolio companies, FinCanna’s business model enables them to avoid dilutive equity financing agreements with a potentially lower cost of capital. Portfolio companies also have greater flexibility; their owner/operators maintain control and operating autonomy and the agreements can be customized based on the situation. Incentives for both companies are also aligned since FinCanna only makes money when portfolio companies make money.
FinCanna’s shareholders benefit from a diversified portfolio of companies across different sectors as the company seeks to invest its capital in rapidly emerging private companies operating in the licensed U.S cannabis industry. For investors, diversification helps mitigate the risk of any individual company or sub-sector impacting an entire portfolio’s value. Cannabis investors also have access to private versus public cannabis companies as added diversification. Additionally, FinCanna’s royalty business model doesn’t require nearly as many personnel or resources as production companies, which keeps overhead costs relatively low and predictable.
FinCanna’s current active royalty portfolio includes
- ezGreen Compliance – ezGreen Compliance offers state-of-the-art enterprise compliance and point-of-sale (POS) software solutions to licensed cannabis dispensaries and cultivators. ezGreen’s POS software supports and simplifies the maintenance of accurate reporting, inventory control and taxation requirements for licensees seeking to remain compliant.
- Refined Resin Technologies – Refined Resin Technologies, located in Oakland California, is a cannabinoid research and refinery company engineered for industrial scale. Upon build-out of its 6,000 square foot extraction facility, the company is looking to provide B2B and B2C products and services to licensed dispensaries and distributors in the licensed cannabis supply chain.
- QVI Inc. – QVI Inc. is a manufacturer of cannabis-infused products under the trade name “The Galley”. Currently, the company is retrofitting its 8,300 square foot facility with dedicated spaces for a large-scale commercial kitchen for baked goods, chocolate products, hard candies and gum products. The facility will also have a designated area for contract manufacturing and additional products.
- U.S. focused with an emphasis on California
- Royalty model aligns financial incentives for operators and FinCanna
- Diversified investment portfolio over multiple sectors
- Early entrant in U.S. with an extensive network for new projects
- Investing in private companies not available to individual
Cannabis Market in California
According to ArcView Market Research and BDS Analytics, global spending on legal cannabis is expected to reach $57 billion by 2027. North America is expected to continue to lead in sales which are expected to reach $7.3 billion by 2027. California is the largest cannabis market in North America, boasting over 30 percent of legal cannabis product sales in the region. Following the legalization of the recreational market on January 1, 2018, the California cannabis market hit a total of $2.5 billion in 2018 and is expected to reach approximately $50 billion by 2026.
Morris L. Reid—Chairman of the Board
Mr. Reid is a globally recognized corporate & political strategist based in Washington, D.C & London. He is a partner at Mercury, a high-stakes public strategy firm representing the world’s most successful companies, leading advocacy groups, governments, political parties, NGOs, & prominent public & political figures. His media contributions as an expert in political & business marketing including; CNN, CNBC, MSNBC, NYT & USA Today.
Andriyko Herchak CPA, CA—CEO and Director
Mr. Herchak has over 20 years of executive leadership experience with publicly traded companies. He was the former CFO of an international sales and marketing company generating US$1.4B in annual sales and the former CFO of a mineral exploration company that raised C$100M and was sold for C$650M cash. Mr. Herchak brings extensive experience of financial raises, growing companies, managing and deploying capital.
Robert Scott, CPA, CA, CFA—CFO
Mr. Scott brings over 20 years of experience in public company management and corporate finance, including merchant and commercial banking. He has served as executive and board member of a number of Canadian listed issuers in a variety of industries that have raised capital in excess of C$150M. His roles have included involvement in corporate acquisitions and divestitures, financing as well as restructuring.
Robert Kamm, MBA – Director
Mr. Kamm has over 25 years experience operating & advising businesses from large Fortune 500 corporations to venture capital backed companies. Mr. Kamm is currently a principle and the Entrepreneur in Residence at Sandy Hill Venture Capital.
Gaynell Rogers—Advisor to the Board
Since 2009, Ms. Rogers has continued as an expert and frequent speaker on national and international media relations, marketing and investments in the cannabis industry and is based in California. She was Head of Media Relations & Special Projects for 10 years at Harborside in Oakland. Formerly a Senior Publicist for Lucasfilm Ltd., Head of Feature Film Publicity for Pixar and secured the creation of the first cannabis mini series TV show “Weed Wars” on The Discovery Channel. She was the 1st in the industry to secure multiple national features for her clients in Fortune, NYT, and other major U.S. and international outlets.
Patrick Goggin – Advisor to the Board
Mr. Goggin is a Senior Attorney at Hoban Law Group (HLG), the United States’ premier cannabusiness law firm. He has waged battle on the legal front lines of industrial hemp and general cannabis reform for over two decades. Mr. Goggin is based in San Francisco where he helped lead industry efforts for passage of San Francisco’s inaugural ordinance regulating medical cannabis and later served on the city’s Medical Cannabis Task Force.
John Campbell, CPA, CA, MBA, CFA—Advisor to the Board
Mr. Campbell co-founded CWC Capital, a regional investment banking firm that raised in excess of $750M in capital. Mr. Campbell serves as a director of a number of private & public companies, and currently serves as Chairman & CFO of TriView Capital, one of Canada’s largest Exempt Market Dealers.
Rosy Mondin—Advisor to the Board
Ms. Mondin served as strategic advisor for several companies involved in the processing, distribution, and safe use of medical cannabis. Ms. Mondin is CEO & Director of Quadron Cannatech, which focuses on extraction and processing solutions. Ms. Mondin is also the co-Founder and Executive Director of the Cannabis Trade Alliance of Canada (CTAC) and Special Advisor to the Canadian Association of Medical Cannabis Dispensaries (CAMCD).
Danl Walron—Advisor to the Board
Ms. Walton has traveled the world with the executive team of Harborside for more than 10 years, promoting the positive impacts of the cannabis plant. She is also developing products for the in house Harborside brands and has been featured in Forbes, The Guardian, The Independent and numerous other publications and media outlets.
Miguel Motta—Advisor to the Board
Mr. Motta was CTI’s President & CEO and is based in California. He has previously led global strategy for US$1 billion portfolio of agricultural products as an executive for a world leading agricultural, Fortune 150 company.
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