FinCanna Advances Second Tranche of Capital to Refined Resin Technologies Inc.
Refined Resin Orders Key Cannabis Extraction Equipment Required to Become a Premier Bulk Producer of THC Distillate and High-Value Concentrates for California’s Growing Demand for Extracts
Vancouver, British Columbia, August 22, 2018 - FinCanna Capital Corp. (“FinCanna”) (CSE: CALI) (OTCQB: FNNZF) a royalty company for the US licensed medical cannabis industry, has advanced US$1 million, the second tranche of capital, to its investee company Refined Resin Technologies Inc. (“Refined Resin”) of Oakland, California. Refined Resin is a cannabinoid research and extraction company that provides B2B and B2C products and services to licensed dispensaries and distributors in the medical cannabis supply chain.
This capital is the second in a series of tranches to be advanced as Refined Resin implements its three-phase development strategy to operationalize its legally zoned, large, state-of-the-art medical cannabis extraction laboratory. FinCanna with its recently completed financing of C$6.8 million is currently fully funded to make the additional payments as certain milestones are met.
With this second tranche of funding completed, Refined Resin has now placed deposits and has funds in reserve to complete the purchase of all equipment required to commence production once installed. Sourced from three premier national suppliers, substantial aspects of the specialized production equipment are custom designed to facilitate Refined Resin’s high volume, low cost approach to production. The extraction facility is targeted to be in commercial operation by late 2018 or early 2019.
Additionally, other work identified in the company’s Phase One Facility Design stage is underway and moving towards completion including finalization of all architectural, engineering and mechanical drawings required prior to launching the Build Out Phase of the project.
Refined Resin is also currently receiving significant interest from potential customers for its high quality extracted products and continues to meet with key suppliers, distributors and potential customers in support of its commercial launch.
Royalty payments to FinCanna from Refined Resin are equal to 11.75% on the first US$160 million of annual revenues payable in perpetuity subject to certain buy-back options.
“We are very pleased to see the company aggressively pursue the acquisition of the highly specialized and customized equipment that we believe will set them apart in the sector once in commercial operation,” said Andriyko Herchak, President and CEO of FinCanna Capital. “Refined Resin is led by a team of very seasoned operators that have extensive experience in all areas of the business. Their manufacturing know-how coupled with state of the art, high volume customized production technology is a combination that we believe will drive substantial financial results as the business moves from design through build out and ultimately into commercial production.”
Refined Resin’s intention is to become a premier producer of bulk quantities of THC distillate and various high value concentrates produced via hydrocarbon-based solvent extraction. The company also plans to provide white-labeling services to licensed brands and infused product manufacturers who do not have direct access to compliant production facilities. Brands and manufacturers who work in conjunction with Refined Resin will also be able to utilize their in-house distribution and marketing expertise as part of their value-add service offering.
The California Department of Tax and Fee Administration (CDTFA) reported strong quarterly cannabis tax revenue growth in California in a press release issued on August 15, 2018. California’s tax revenue from the cannabis industry totaled $74.2 million for the second quarter of 2018, including $43.5 million in excise taxes that were charged on all cannabis and cannabis products sold by licensed retailers. Based on the 15 percent excise tax rate for marijuana, that equates to total sales of approximately $290 million from April 1 to June 30 of this year.
About Refined Resin Technologies Inc.
Refined Resin Technologies, based in Oakland, California, is a cannabinoid research and refinement company focussed on the medical cannabis industry to provide B2B and B2C products and services to licensed dispensaries, infused product manufacturers and numerous others in the medical cannabis supply chain.
About FinCanna Capital Corp.
FinCanna provides financing to top-tier companies in the licensed medical cannabis industry in exchange for a royalty on revenues. FinCanna, led by a team of finance and industry experts, is building its diversified portfolio of royalty investments in scalable, best-in-class projects and companies in U.S. legal states, with a focus on California. For additional information visit www.fincannacapital.com and FinCanna’s profile at www.sedar.com.
FinCanna Capital Corp.
Andriyko Herchak, CEO & Director
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