FinCanna Provides an Update on CTI’s Medical Cannabis Extraction Facility in Coachella, California and Receives OTC Listing
FinCanna Capital Corp. (“FinCanna”)(CSE:CALI) (OTCQB:FNNZF) announces that it has received its listing on the OTCQB under the symbol “FNNZF” and provides the following update on the interim medical cannabis extraction facility (“Extraction Facility”) of Cultivation Technologies Inc (“CTI”), FinCanna’s first investment in California. As announced on January 15, 2018, CTI took over direct operations of its Extraction Facility operating at its site in Coachella, California and CTI has the rights to 100% of the production capacity.
CTI is quickly advancing towards commercialization and ramping revenue at the Extraction Facility from which FinCanna is entitled to receive 50% of the profits.
This Extraction Facility can currently process an estimated 6,000 pounds of biomass per month translating to approximately 3.7 million grams of raw oil per year. CTI has the ability to add an additional extraction machine and fractional distillation and winterization equipment. This would result in additional capacity to process 3,000 pounds of biomass per month and the ability to service third-party vaporizer, winterization and distillation customers at a scale of approximately 100,000 grams of finished product weekly.
CTI’s Coachella Premium Brand
CTI’s own brand, Coachella Premium, recently introduced a line of medical concentrates which are now available for sale to all California licensed dispensaries. CTI is currently expanding its product line to include vaporizer cartridges, which will become available in the coming weeks. Initial market feedback gathered during the product development phase indicates that Coachella Premium’s vaporizer cartridges offer a unique proposition within the vaporizer market, one of the fastest growing verticals in the cannabis market.
Manufacturing and Distribution Services
Since taking operational control at its Extraction Facility, and after obtaining state temporary licenses, CTI has acquired key accounts for contracted manufacturing and distribution. Private label services have commenced at the site, providing brands which otherwise had no legal avenue to participate in the licensed environment, a legal solution to maintain their presence in the market.
Implementation of Commercial Sales Team
To commercially advance these opportunities, CTI has hired an experienced sales team consisting of a director of sales, two full-time sales managers, and three independent sales contractors. Chip Coble, the Company’s new director of sales, joined the CTI team in the beginning of March and brings with him over 25 years of channel sales and operations management, overseeing teams as big as 100 and managing multi-million-dollar budgets. He will be overseeing the sales of CTI’s exclusive line of branded cannabis products: Coachella PremiumTM, as well as direct B2B sales under CTI’s manufacturing and distribution operations. CTI’s sales organization is strategically set up to serve designated zones throughout California to ensure statewide market penetration.
The state of California is taking steps to curtail the operations of the black market. Regulators have begun sending cease and desist letters to unlicensed operators, including advertising companies which have continued to support unlicensed operators. In addition, an effort to support the businesses which have invested time and capital to reach legal status has begun with the introduction of amendments to Assembly Bill (3157). The amendments propose to reduce the price disparity between legal cannabis business and black-market sources by suspending the state’s cultivation tax and reducing the state’s excise tax until 2021. These efforts highlight the state’s support for compliant business, strengthening the value proposition and opportunity in front of compliant operators such as CTI.
With the passing of Proposition 64 in November 2016 and legalization of adult use taking effect January 1, 2018, the state of California is now the world’s largest regulated cannabis market and estimated to be worth $6.45 billion by 2020. More information on the effects of the changing landscape in California can be found here.
About Cultivation Technologies
Cultivation Technologies, Inc. provides infrastructure, technology, and branding to the licensed medical cannabis industry. The first major project for the company is in Coachella, California, which will span 6-acres featuring cultivation centers, extraction and manufacturing facilities, a testing lab, a distribution hub, and a centralized processing center. For more information, visit www.CultivationTech.com.
About FinCanna Capital Corp.
FinCanna provides financing to top-tier companies in the licensed medical cannabis industry in exchange for a royalty on revenues. FinCanna, led by a team of finance and industry experts, is building its diversified portfolio of royalty investments in scalable, best-in-class projects and companies in U.S. legal states, with a focus on California. For additional information visit www.fincannacapital.com and FinCanna’s profile at www.sedar.com.
FinCanna Capital Corp.
Andriyko Herchak, CEO & Director
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included herein including, without limitation, statements about FinCanna’s ability to source suitable projects, the development and construction of the CTI’s facility at Coachella, and the size and success of operations at the Extraction Facility and FinCanna’s ability to generate revenues therefrom. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the risks identified in the CSE listing statement and other reports and filings with the applicable Canadian securities regulators. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made, and the respective companies undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by applicable law.