VANCOUVER, British Columbia, Aug. 22, 2018 (GLOBE NEWSWIRE) -- FinCanna Capital Corp. (“ FinCanna ”) (CSE: CALI) (OTCQB: FNNZF) a royalty company for the US licensed medical cannabis industry, has advanced US$1 million, the second tranche of capital, to its investee company Refined Resin Technologies Inc. (“Refined Resin”) of Oakland, California. Refined Resin is a cannabinoid research and extraction company that provides B2B and B2C products and services to licensed dispensaries and distributors in the medical cannabis supply chain.
This capital is the second in a series of tranches to be advanced as Refined Resin implements its three-phase development strategy to operationalize its legally zoned, large, state-of-the-art medical cannabis extraction laboratory. FinCanna with its recently completed financing of C$6.8 million is currently fully funded to make the additional payments as certain milestones are met.
With this second tranche of funding completed, Refined Resin has now placed deposits and has funds in reserve to complete the purchase of all equipment required to commence production once installed. Sourced from three premier national suppliers, substantial aspects of the specialized production equipment are custom designed to facilitate Refined Resin’s high volume, low cost approach to production. The extraction facility is targeted to be in commercial operation by late 2018 or early 2019.
Additionally, other work identified in the company’s Phase One Facility Design stage is underway and moving towards completion including finalization of all architectural, engineering and mechanical drawings required prior to launching the Build Out Phase of the project.
Refined Resin is also currently receiving significant interest from potential customers for its high quality extracted products and continues to meet with key suppliers, distributors and potential customers in support of its commercial launch.
Royalty payments to FinCanna from Refined Resin are equal to 11.75% on the first US$160 million of annual revenues payable in perpetuity subject to certain buy-back options.
“We are very pleased to see the company aggressively pursue the acquisition of the highly specialized and customized equipment that we believe will set them apart in the sector once in commercial operation,” said Andriyko Herchak, President and CEO of FinCanna Capital. “Refined Resin is led by a team of very seasoned operators that have extensive experience in all areas of the business. Their manufacturing know-how coupled with state of the art, high volume customized production technology is a combination that we believe will drive substantial financial results as the business moves from design through build out and ultimately into commercial production.”
Refined Resin’s intention is to become a premier producer of bulk quantities of THC distillate and various high value concentrates produced via hydrocarbon-based solvent extraction. The company also plans to provide white-labeling services to licensed brands and infused product manufacturers who do not have direct access to compliant production facilities. Brands and manufacturers who work in conjunction with Refined Resin will also be able to utilize their in-house distribution and marketing expertise as part of their value-add service offering.
The California Department of Tax and Fee Administration (CDTFA) reported strong quarterly cannabis tax revenue growth in California in a press release issued on August 15, 2018. California’s tax revenue from the cannabis industry totaled $74.2 million for the second quarter of 2018, including $43.5 million in excise taxes that were charged on all cannabis and cannabis products sold by licensed retailers. Based on the 15 percent excise tax rate for marijuana, that equates to total sales of approximately $290 million from April 1 to June 30 of this year.
About Refined Resin Technologies Inc.
Refined Resin Technologies, based in Oakland, California, is a cannabinoid research and refinement company focussed on the medical cannabis industry to provide B2B and B2C products and services to licensed dispensaries, infused product manufacturers and numerous others in the medical cannabis supply chain.
About FinCanna Capital Corp.
FinCanna provides financing to top-tier companies in the licensed medical cannabis industry in exchange for a royalty on revenues. FinCanna, led by a team of finance and industry experts, is building its diversified portfolio of royalty investments in scalable, best-in-class projects and companies in U.S. legal states, with a focus on California. For additional information visit www.fincannacapital.com and FinCanna’s profile at www.sedar.com .
FinCanna Capital Corp. Andriyko Herchak, CEO & Director
Investor Relations: Arlen Hansen Kin Communications 1-866-684-6730 CALI@kincommunications.com
Forward-Looking Information
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included herein including, without limitation, statements about the market for, and effectiveness of, Refined Resin Technologies Inc. products or services, the ability of Refined Resin to expand operations and generate sales and revenues, the results of operations of Refined Resin and the timing thereof, the completion of FinCanna’s investment in Refined resin, FinCanna’s ability to fund and source future projects, and FinCanna’s ability to earn and realize revenues from its investee companies. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the risks identified in the CSE listing statement available at www.SEDAR.com and other reports and filings with the applicable Canadian securities regulators. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made, and the respective companies undertake no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
