InvestorIntel Part 1 - FinCanna CEO shares ‘twist’ for the cannabis industry
FinCanna Capital Corp. (CSE: CALI | OTCQB: FNNZF) is one of two publicly traded pure-play Cannabis royalty companies focused in the United States. The market has witnessed other like-minded companies with their own twist, such as, Auxly Cannabis Group Inc. (TSXV: XLY | OTCQX: CBWTF) and Origin House (OH:CSE, ORHOF:OTCQX) do extremely well growing to a combined market cap of $750M CDN.
FinCanna has its financing obligations covered, a large non-dilutive injection of capital expected shortly, and its own unique ‘twist’ for cannabis businesses that it invests in, so I thought the timing would be right to sit down with Andriyko Herchak, CEO of FinCanna to discuss its model, its competitive advantage and where the blue sky sits for investors of FinCanna.
This is the first part of a 5-part interview series with the FinCanna team and its investee companies. Stay tuned for more one-on-ones with management.
Can you define the FinCanna Royalty Model and its advantages for investor?
FinCanna is a Royalty Company, which invests in U.S. licensed cannabis related companies to earn a percentage of their top-line revenues that can generate a high margin income stream for our shareholders.
Our model limits the Company’s downside risk as FinCanna registers a first charge on the assets of our investee companies and correspondingly holds large potential upside as our investee companies successfully mature and their revenues grow. We also have the potential for significant one-time gains, via the repurchase of our royalty, if a buyout of one of our investee companies were to occur.
All of the companies that we have invested in are privately held, which most investors would not have the opportunity to invest in directly. As FinCanna is a publicly traded company it provides our investors with the benefits of transparency and liquidity typically not associated with private companies. So, we really offer the best of both worlds of investing in a publicly traded company that provides you with indirect investment into a diversified portfolio of private US companies.