The interim medical cannabis extraction facility (“Interim Extraction Facility”), which commenced operations in October 2017, had been operated by a third-party tenant of CTI on its site in Coachella, whereby CTI was entitled to a maximum of maximum of 20% of the production capacity On January 15, 2017 the Company announced that CTI took over direct operations of the Interim Extraction Facility and increased its entitlement to 100% of the production capacity
This Interim Extraction Facility can currently process an estimated 6,000 pounds of biomass per month to produce approximately 3.7 million grams of raw oil per year. Under the new direct operating arrangement, CTI has the ability to add an additional extraction machine and fractional distillation and winterization equipment. This would result in additional capacity to process 3,000 pounds of biomass per month and the ability to service third-party vaporizer, winterization and distillation customers at a scale of approximately 100,000 grams of finished product weekly.
FinCanna is entitled to receive 50% of the profits of CTI which are derived from this Interim Extraction Facility.