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 three companies.
QVI, Inc. is a cannabis infused product manufacturer located in Sonoma, California and operating as “The Galley”. The Galley is a fully licensed 8,300 square foot facility and built to the high standards of both the Food and Drug Administration and the California Dept. of Public Health. The Galley is focused on high demand areas of production: Edibles, Topicals, Tinctures, Chocolates, Hard Candies, Gummies, Beverages, Vapes, Pre-Rolls and Flower Packaging. Under the Royalty Agreement, FinCanna receives a corporate royalty of 20% of QVI’s revenues, paid in cash monthly. Additionally, FinCanna will receive an Annual Supplemental Payment, that when coupled with the royalty, will ensure FinCanna receives from QVI a minimum of 70% of QVI’s annual after-tax net income, paid in cash every year. If QVI is sold, then FinCanna will receive 70% of the sales proceeds.
Cultivation Technologies Inc. (“CTI”) is a multi-award winning extraction and manufacturing enterprise located in Palm Desert, California that provides high quality Butane Hash Oil (BHO) concentrates for white label manufacturing, toll processing and packaging to hand-selected brands and cultivators in California. Under the Royalty Agreement (fully funded), FinCanna earns a perpetual royalty of 10% of CTI’s consolidated revenues, of which 5% is paid in cash monthly and 5% deferred until certain triggering events, subject to certain buyback options. Additionally, FinCanna will be entitled to 25% to 50% of the sale proceeds of any change of control.
ezGreen Compliance offers a state-of-the-art enterprise compliance and point-of-sale software solution (“ezGreen”) for licensed medical cannabis dispensaries and cultivators. The ezGreen software is the only HIPAA (Health Insurance Portability and Accountability Act) certified point-of-sale software in the market. In August 2020, FinCanna acquired from its former royalty portfolio company 100% of the assets and economic interests of ezGreen and is currently focused on growing its business in California and certain other states.