CannaRoyalty (CSE:CRZ) has announced it has entered into a binding term sheet regarding a royal financing agreement with Rich Extracts in which CannaRoyalty will receive 30 percent on Rich Extracts’ gross revenues.
As quoted in the press release:
Rich Extracts has constructed a 30,000 square foot facility in Oregon to produce cannabis extract products using a variety of extraction processes. The facility houses equipment including extractors capable of processing up to 60,000 grams per month and short path distillation units that can process up to 4,000 grams per week. Commercial operations will commence, and are subject to, the facility obtaining the necessary permits from the Oregon Liquor Control Commission, which are expected to be received in the first half of 2017.
“Rich Extracts is an award-winning brand with a mission to produce the highest quality, purest cannabis concentrates and distillates in the Oregon market. We’re excited to finalize this royalty agreement with Rich Extracts which is poised to be a leading cannabis company in Oregon, a market which in 2016 had estimated cannabis product sales of approximately US$200mm,” said Marc Lustig, Chief Executive Officer of CannaRoyalty.
In June 2016, Rich Extracts was granted its medical processing license (MMPS#281970) by the Oregon Health Authority for processing of cannabis products in accordance with the Oregon Medical Marijuana Program. In anticipation of the new standards that were to be enacted by the Oregon Liquor Control Commission (OLCC), in August 2016 Rich Extracts began a significant development and expansion of its operations in order to meet the expected OLCC guidelines. On September 29, 2016, Rich Extracts formally filed its application for an OLCC license and is expecting to obtain the license during the first half of 2017.