Vancouver, BC – FinCanna Capital Corp. (CSE:CALI) (the “Company” or “FinCanna”) is pleased to announce that as of January 1, 2018, under the Medical and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”), cannabis in California will be regulated by various state agencies.
Following Proposition 215 which allowed a system for legal medical cannabis under what is commonly referred to as “collective law” – under MAUCRSA, a full framework of state licensure now exists which includes taxation and comprehensive regulations for cultivation, manufacturing, distribution, testing, and retail. The state of California reports that revenue from taxation will be allocated to research, treatment, enforcement, amongst other initiatives.
New state licensing and regulations legitimize the billion-dollar cannabis industry in California. FinCanna believes top-tier Companies with state licenses are positioned to prosper and represent royalty investment opportunities in which the Company is targeting.
The regulations are expected to change existing supply/demand dynamics and generate significant tax revenue for the state of California, the single largest medical cannabis market in the United States. To operate legally in California after January 1, 2018, every stage of the supply chain in California must be state-licensed therefore certain amounts of existing production will no longer be legally eligible for retail sale in California.
Andriyko Herchak, President and CEO of FinCanna states, “We are in strong support of these new laws which provide a clear regulatory framework, allowing companies to operate ethically and legally in the state of California.”
New state laws will also require stringent product management standards for the cannabis industry systems to establish industry standards regarding testing, packaging and labeling. Regulations also require a fully transparent seed-to-sale tracking system through the newly created State Regulatory Agency— CalCannabis Cultivation Licensing within the California Department of Food and Agriculture (CDFA). Implementation of this “track and trace” system are designed to ensure accountability for all stakeholders helping eliminate non-compliant products being sold.
FinCanna supports these new measures in California and stands behind this clearer, more regulated market as set out by the Bureau of Cannabis Control, the Manufactured Cannabis Safety Branch in the Department of Public Health and the CalCannabis Cultivation Licensing division, all as set out under MAUCRSA.
The independent California Legislative Analyst’s Office projects that tax revenue could range from the “high hundreds of millions of dollars to over $1 billion annually”. This will help California’s $3.3 billion revenue shortfall and will fund “drug research, treatment, and enforcement, health and safety grants addressing marijuana, youth programs, and preventing environmental damage resulting from illegal marijuana production.”
The Company remains focused on sourcing and funding top-tier companies operating in the licensed medical cannabis sector for royalties.
For general information on a royalty investment model, click here:
About FinCanna Capital Corp.
FinCanna is a royalty company for the licensed medical cannabis industry, 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. 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 and http://www.cultivationtech.com/
FinCanna Capital Corp.
Andriyko Herchak, CEO & Director
1-866-684-6730 or 1-604-684-6730
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. Forward-looking statements include, but are not limited to the growth in the cannabis market, the size of revenue of the cannabis market, the construction of CTI’s medical cannabis facility in Coachella, Southern California (“Coachella Campus”), the ability of FinCanna to raise financing to invest in additional projects, FinCanna’s financial forecasts, plans for expansion of FinCanna’s business, statements about potential market developments, the impact of the new California cannabis legal regime on the cannabis industry, the size of the legitimate cannabis industry in California, tax revenue generated from the cannabis industry in the state of California and the use of such tax revenue by the state and trends and other statements that are not historical facts. In addition, forward-looking statements relating to CTI’s business are based on assumptions regarding the construction, completion and operations of CTI’s Coachella Campus, including that CTI will obtain the financing required to build and equip its proposed facility, that CTI will obtain the additional financing required to operate the facility, that construction is completed on time and budget, while CTI is allowed to operate on an interim basis with its existing permits, that CTI obtains state licenses to operate on a permanent basis and that the equipment used in the cultivation of medical cannabis performs at scale in a similar way it performs at CTI’s pilot tests. 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.