Fincanna Raises Capital To Acquire Cannabis Royalties

Ryan Allway

Ryan Allway

September 27th, 2017

Exclusive, News, Top News

The global cannabis industry is projected to grow from $14.3 billion in 2016 to an estimated $63.5 billion by 2024, according to Ameri Research Inc. While there are no shortage of public companies operating in the space, royalty companies represent some of the most compelling opportunities given their low capex requirements, diverse revenue streams, and higher profit margins than cultivation or retail operations.

FinCanna Capital Corp. is a royalty company for licensed medical cannabis that’s planning to go public in Canada over the near-term through a reverse takeover transaction with Astar Minerals Ltd. (TSX-V: TAR). Through its flagship investment in Cultivation Technologies Inc., the company offers investors exposure to California’s burgeoning market with a 111,500 sq. ft. facility planned in Southern California where it would earn the greater of 10% of revenue or 20% of EBITDA.

For more information, sign-up for an alert when the company goes public and download their investor presentation here:

Early Investment Opportunity

FinCanna has recently announced a non-brokered subscription receipt financing to raise up to C$10 million, suitable for accredited investors only, and a brokered subscription receipt financing for gross proceeds of up to C$10 million. The up to C$20 million in combined capital will be used to build a portfolio of investments in scalable, best-in-class licensed medical cannabis projects, including the financing of its Cultivation Technologies Inc. investments in Southern California and similar projects.

In each financing, the company will issue subscription receipts at C$0.50 that can be converted into one common share of FinCanna along with a one-half common share purchase warrant with an exercise price of C$0.75 for 2 years, immediately before its acquisition by Astar Minerals. Accredited investors purchasing these subscriptions would therefore have the opportunity to buy into the stock before it becomes publicly traded in Canada.

For more information, sign-up for an alert when the company goes public and download their investor presentation here:

Unique Opportunity in California

The State of California has maintained an informal medical marijuana industry for many years, but voters only recently passed adult use legalization measures. Proposition 64 made it legal for anyone over the age of 21 to grow and consume certain levels of marijuana. These regulations are set to go into effect early next year, which could create one of the largest markets for fully-legalized cannabis in the world.

Cultivation Technologies Inc.’s Coachella Campus is a fully-entitled 111,500 sq. ft. facility on six acres to be constructed in Southern California. The proposed facility will include an 81,600 sq. ft. cultivation center, a 9,000 sq. ft. extraction and manufacturing center, and 20,900 sq. ft. of ancillary space. Currently, the team is in the process of obtaining key building permits, but when approved, it would be one of the largest projects of its kind in the state.

Looking Ahead

FinCanna Capital Corp. represents a unique investment opportunity for accredited investors given the exposure to California’s licensed medical cannabis industry. With its current financing, accredited investors have an opportunity to build a stake early on. At the same time, all investors might want to keep an eye out on the reverse takeover and consider investing in the public stock of the company, once trading.

For more information, sign-up for an alert when the company goes public and download their investor presentation here:

About Ryan Allway

Source: CannabisFN