Our royalty investment forms part of a whole capital solution for our investee companies. We provide capital investment for a percentage of future revenues or profits and currently have invested in the following 3 companies.
- FinCanna has a 50% profit sharing interest in Cultivation Technologies Inc. (CTI)’s Interim Extraction facility at Coachella, which can process an estimated 6,000 pounds of biomass per month, translating to approximately 3.7 million grams of raw cannabis oil per year.
- FinCanna has secured a loan to CTI of US$6 million earning interest of 20% per annum, payable each month. FinCanna has the option to convert the loan into a perpetual royalty equal to a percentage (up to 5%) of CTI revenues in perpetuity on projects which FinCanna does not elect to fund.
- FinCanna is entitled to complete its funding to CTI of US$8.1 million in exchange for a Royalty of 14% of CTI’s revenues from its planned Coachella Campus Project. This planned 111,500 sf facility is to be developed in phases on six acres. FinCanna also has the right to finance CTI’s next 2 licensed cannabis facility projects on the same terms as the Coachella Project.
Green Compliance offers a state-of-the-art enterprise compliance and point-of-sale software solution (“ezGreen”) for licensed medical cannabis dispensaries and cultivators. Upon completion of funding, FinCanna earns a perpetual royalty equal to 10% of consolidated gross revenues of ezGreen, subject to certain buy-back options.
Refined Resin Technologies
Refined Resin Technologies is a cannabinoid research and refinery company that provides B2B and B2C products and services to licensed dispensaries and distributors in the medical cannabis supply chain. Upon completion of funding, FinCanna earns a perpetual royalty ranging from 16% to 7.0% of Refined Resin’s consolidated annual revenues, subject to certain buy-back options, with an effective royalty rate of 11.75% on the first US$160 million of Refined Resin’s consolidated annual revenues.