FinCanna to Share 50% of Profits from Cultivation Technologies’ Interim Medical Cannabis Extraction Facility in Coachella, ...
October 25 2017 - 7:30AM
FinCanna Capital Corp. (“FinCanna”) and Astar Minerals Ltd.
(“Astar”) (TSX-V:TAR) 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 TechnologiesCultivation
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 & Directoraherchak@fincannacapital.com
Astar Minerals Ltd. Stephen
Stanley, CEO & Director
Investor Relations: Caleb Jeffries Kin
Communications 1-866-684-6730 CALI@kincommunications.com
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.
Forward-Looking InformationThis 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.
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