Vancouver, British Columbia, October 25, 2017 – FinCanna Capital Corp. (“FinCanna”) and Astar Minerals Ltd. (“Astar”) (TAR:CV) announced that FinCanna will share 50% of the profits from Cultivation Technologies’ interim medical cannabis extraction facility currently operating in Coachella, California. This profit sharing will commence October 1, 2017. The new arrangement with FinCanna’s flagship investment provides FinCanna with a source of monthly revenue before the construction of CTI’s Coachella Campus is completed as planned.
As reported on September 12, 2017, the interim medical cannabis extraction facility was established on the Coachella premises in accordance with CTI’s Conditional Use Permit. The lab has already begun to produce medical extracts for sale, and is expected to remain in operation during the construction of the medical cannabis campus planned on the six-acre site.
The profit sharing was established in exchange for the extension of certain dates and other amendments to FinCanna’s agreement with CTI. FinCanna has agreed to reinvest part of its profit sharing in CTI as a secured loan, subject to certain limitations.
Under the initial agreement with CTI, FinCanna agreed to provide funding for a portion of the costs to construct a fully-entitled, indoor medical cannabis facility on the campus. The funding is in the form of a loan, along with the right to purchase a royalty to be paid to FinCanna, subject to certain terms and conditions. The state-of-the-art facility is expected to support cultivation, extraction, manufacturing, testing and distribution.
Andriyko Herchak, President and CEO of FinCanna, stated: “Our new arrangement with CTI provides us an immediate source of revenues from the Coachella Campus sooner than was originally contemplated under our original funding agreement, as we now no longer have to wait until the permanent facility is completed. Moreover, as our flagship investment, the initiation of revenue from CTI also proves out our well-structured royalty investment model. We continue to be impressed by their exceptional management team and strategic approach to the market.”
CTI and FinCanna are looking to benefit from the growth of the U.S. medical cannabis industry, which is expected to reach $55.8 billion by 2025, according to Grand View Research. California is the largest licensed medical cannabis market in North America, with new comprehensive state laws coming into effect on January 1, 2018. The new rules are expected to create significant barriers to entry for existing and new medical cannabis producers who, unlike CTI, have not secured municipal permitting or are unable to cultivate without chemical pesticides.
About Cultivation Technologies
Cultivation Technologies, Inc. provides infrastructure, genetics, technology, and branding to the legal medical cannabis industry. The first major project for the company is in Coachella, California, which will span 6-acres featuring cultivation centers, 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 is a royalty company for licensed medical cannabis, with a focus on California. FinCanna, led by a team of finance and industry experts, is building its portfolio of investments in scalable, best-in-class projects. FinCanna’s flagship investment is with Cultivation Technologies, Inc. (CTI) to provide funding for its fully-entitled, large-scale indoor medical cannabis facility to be developed in Coachella, Southern California. This Coachella Campus will be a state-of-the-art facility that will include cultivation, extraction, manufacturing, testing and distribution. For additional information, visit www.fincannacapital.com.
FinCanna and Astar entered into a binding agreement on July 13, 2017, pursuant to which Astar will acquire all of the issued and outstanding common shares of FinCanna on a one for one basis (the “Transaction”).
All trademarks in this press release are the exclusive property of their respective owners.
FinCanna Capital Corp.
Andriyko Herchak, CEO & Director
Astar Minerals Ltd.
Stephen Stanley, CEO & Director
Neither the TSX Venture Exchange or the CSE in any way passed upon the merits of the Transaction and has neither approved nor disapproved the contents of this news release.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities.
All information contained in this news release with respect to Astar and FinCanna was supplied by the parties, respectively, for inclusion herein, and each parties’ directors and officers have relied on the other party for any information concerning such party.
This news release contains forward-looking information based on current expectations. Statements about, among other things, the future business plans and prospects of FinCanna, AStar and CTI are forward looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Such factors include, but are not limited to the ability of CTI to execute on its current business plan, the ability of FinCanna to identify and finance investment opportunities, the ability of FinCanna and AStar to complete the Transaction, the ability of FinCanna to access any funds it earns in the U.S., the ability of CTI to financing the construction of the Coachella Project, the ability of FinCanna to raise funds in the future and changes in the U.S. and Canadian regulatory regime. Although such statements are based on management’s reasonable assumptions at the date such statements are made, there can be no assurance that FinCanna or CTI will achieve the future performance or results described above and that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on the forward-looking information. Astar and FinCanna assume no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by applicable law.