FinCanna Advances Second Tranche of Capital to Refined Resin Technologies Inc. Refined Resin Orders Key Cannabis Extraction Equipment Required to Become a Premier Bulk Producer of THC Distillate and High-Value Concentrates for California’s Growing Demand for Extracts
FinCanna Advances Second Tranche of Capital to Refined Resin Technologies
Inc.
Refined Resin Orders Key Cannabis Extraction Equipment Required to Become a Premier Bulk Producer of THC
Distillate and High-Value Concentrates for California’s Growing Demand for Extracts
VANCOUVER, British Columbia, Aug. 22, 2018 -- 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
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
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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,
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