- FinCanna signed a binding term sheet with Gram Co subject to due diligence by FinCanna.
- Gram Co, based in Oakland, California, is a cannabinoid research and refinement facility focussed on the medical cannabis industry to provide B2B and B2C products and services to licensed medical dispensaries, infused product manufacturers and numerous others in the cannabis supply chain.
- Gram Co has leased a facility in Oakland, California in which they are retrofitting a large, state-of-the-art medical cannabis extraction laboratory, which is expected to be operating by the end of the third quarter of 2018.
- Gram Co plans to be a premier producer of bulk quantities of THC distillate and various concentrates produced via hydrocarbon-based solvent extraction, and also plans to provide white labeling services to licensed brand and infused product manufacturers who do not have direct access to compliant production facilities.
- Gram Co principles have extensive experience in extraction, manufacturing and business operations, and will also be bringing over their existing brand from their registered collective “California Extracts” to operate under the Gram Co family. California Extracts already has an existing industry following and market presence.
- Under the term sheet, FinCanna would fund US$3 million in tranches. In return, FinCanna will receive a tiered corporate royalty, adjusted based on revenues levels, ranging from 14% to 7.5% of Gram Co’s revenues.
For more information, please see press release dated February 15, 2018.