Our royalty investment forms part of a whole capital solution for our investee companies. We provide capital investment for a percentage of future revenues or profits and currently have invested in the following four companies.
QVI, Inc. is a cannabis infused product manufacturer located in Sonoma, California and operating as “The Galley.” QVI is currently refitting its 8,300 square foot facility to FDA and CDPH standards and is focused on high demand areas of production; Edibles, Topicals, Tinctures, Chocolates, Hard Candies, Gummies, Beverages, Vapes, Pre-Rolls and Flower Packaging. Under the Royalty Agreement (fully funded), FinCanna earns a perpetual royalty ranging from 15% to 6% of QVI’s annual revenues, subject to certain buy-back options.
Cultivation Technologies Inc. (“CTI”) is a top-ranked, extraction and manufacturing enterprise relocating operations from Coachella to a much larger facility in Palm Desert, California. Operating since January 2018, CTI provides licensed, high quality BHO concentrates for white label manufacturing, toll processing and packaging to hand-selected brands and cultivators. Under the Royalty Agreement (fully funded), FinCanna earns a perpetual royalty of 10% of CTI’s consolidated revenue, of which 5% is paid in cash monthly and 5% deferred, subject to certain buyback options. FinCanna is also entitled to 25% to 50% of the sale proceeds of any change of control.
ezGreen Compliance offers a state-of-the-art enterprise compliance and point-of-sale software solution (“ezGreen”) for licensed medical cannabis dispensaries and cultivators. Their target market consists of the 11 states plus Washington DC where cannabis is fully legal, and the 23 additional states where medicinal cannabis is legalized. Upon completion of funding, FinCanna earns a perpetual royalty equal to 10% of consolidated gross revenues of ezGreen, subject to certain buy-back options.
Refined Resin Technologies
Refined Resin Technologies, based in Oakland California, is a cannabinoid research and refinery company that plans to provide B2B and B2C products and services to licensed dispensaries and distributors in the medical cannabis supply chain. Under the Royalty Agreement (fully funded), FinCanna would earn a perpetual royalty ranging from 14% to 5% of Refined Resin’s future consolidated annual revenues, subject to certain buy-back options.