FinCanna Combines Investment & Industry Expertise to Capitalize on California
Uncategorized May 30, 2019 MJ Shareholders
Ryan Allway
May 30th, 2019
Uncategorized
California’s cannabis industry is projected to reach $7.7 billion by 2022, according to BDS Analytics and Arcview Group, making it the largest medical and recreational cannabis market in North America. While there are many different investment opportunities in the state, the best companies have innovative business models that avoid future commoditization issues and maximize scalability to build long-term shareholder value.
In this article, we will take a look at FinCanna Capital Corp.’s (CSE: CALI) (OTCQB: FNNZF) unique business model that addresses these concerns and its experienced management and advisory team capable of executing on its ambitious goals.
Targeting California with a Unique Business Model
FinCanna Capital has developed a royalty investment business focused on the US and California in particular. In exchange for providing capital to licensed cannabis businesses, the company enters into royalty agreements that seek to generate predictable high-margin recurring revenue. The business model is also very scalable since there are no operational components.
For portfolio companies, FinCanna’s business model enables them to avoid dilutive equity financing agreements with a potentially lower cost of capital. Portfolio companies also have greater flexibility; their owner/operators maintain control and operating autonomy and the agreements can be customized based on the situation. Incentives for both companies are also aligned since FinCanna only makes money when portfolio companies make money.
FinCanna’s shareholders benefit from a diversified portfolio of companies across different sectors as the company seeks to invest its capital in rapidly emerging private companies operating in the licensed U.S cannabis industry. For investors, diversification helps mitigate the risk of any individual company or sub-sector impacting an entire portfolio’s value. Cannabis investors also have access to private versus public cannabis companies as added diversification. Additionally, FinCanna’s royalty business model doesn’t require nearly as many personnel or resources as production companies, which keeps overhead costs relatively low and predictable.
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FinCanna’s current active royalty portfolio includes:
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ezGreen Compliance – ezGreen Compliance offers state-of-the-art enterprise compliance and point-of-sale (POS) software solutions to licensed cannabis dispensaries and cultivators. ezGreen’s POS software supports and simplifies the maintenance of accurate reporting, inventory control and taxation requirements for licensees seeking to remain compliant.
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Refined Resin Technologies – Refined Resin Technologies, located in Oakland California, is a cannabinoid research and refinery company engineered for industrial scale. Upon build out of its 6,000 sq. ft. extraction facility looks to provide B2B and B2C products and services to licensed dispensaries and distributors in the licensed cannabis supply chain.
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QVI Inc. – QVI Inc. is a manufacturer of cannabis infused products under the trade name “The Galley”. Currently, the company is retrofitting its 8,300 sq. ft. facility with dedicated spaces for a large-scale commercial kitchen for baked goods, chocolate products and hard candy and gum products. The facility will also have a designated area for contract manufacturing and additional products.
For More Information on FinCanna’s Portfolio Companies Visit the Company’s Website
Experienced Team at the Helm
FinCanna has an experienced management team and advisory board with financial and industry expertise.
CEO Andriyko Herchak, CPA, CA, has over 20 years of executive leadership experience with publicly traded companies and formerly served as the CFO of an international sales and marketing company generating $1.4 billion in annual revenue. Other members of the executive team have similar experience at successful public and private companies where they have demonstrated their ability to execute on their plans.
Chief Financial Officer Robert Scott brings over 20 years of experience in corporate finance, including merchant and commercial banking with a major Canadian bank. He has also served on the board of many Canadian publicly-traded companies as well as successfully listing several companies on the TSX Venture Exchange.
Chairman of the Board Morris Reid is a globally-recognized corporate and political strategist based in Washington D.C. and London. In addition to advising prime ministers, presidents, and royal families around the world, he is a partner at Mercury, a high-stakes public strategy firm that represents the world’s most successful companies, leading advocacy groups, governments, political parties, and NGOs.
Advisor Gaynell Rogers based in California, has been an expert and frequent speaker on national and international media relations, marketing and investments in the cannabis industry since 2009. She was Head of Media Relations & Special Projects for 10 years at Harborside in Oakland. Formerly a Senior Publicist for Lucasfilm Ltd., and Head of Feature Film Publicity for Pixar – she also secured the creation of the first cannabis mini series TV show “Weed Wars” on The Discovery Channel. She was the 1st in the industry to secure multiple national features for her clients in Fortune, NYT, and other major U.S. and international outlets.
Additional advisors, like Patrick Goggin, who served as co-counsel in the HIA vs. DEA case in the 2000s, and Dani Walton, who is the wholesale and distribution manager at Harborside, provide critical insights into the U.S. market.
Click Here to View the Full FinCanna Team
Looking Ahead
FinCanna Capital Corp. (CSE: CALI) (OTCQB: FNNZF) is well positioned to capitalize on California’s burgeoning cannabis industry. With an experienced team at the helm, the company is making progress in securing new investments that should build shareholder value over the long-term.
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For details on FinCanna’s disclaimer and Forward Looking Statements please visit:
https://www.fincannacapital.com/corporate/forward-looking-statement/
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The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: https://www.cannabisfn.com/legal-disclaimer.
https://www.fincannacapital.com/corporate/forward-looking-statement/
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
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