FinCanna Executes & Increases Royalty Payments Under Agreement with Refined Resin Technologies Inc. a California Based Cannabis and Extraction Company New Structure Increases Royalty Payments to 11.75% of First US$160 Million of Annual Revenues
FinCanna Executes & Increases Royalty Payments Under Agreement with
Refined Resin Technologies Inc. a California Based Cannabis and Extraction
Company
New Structure Increases Royalty Payments to 11.75% of First US$160 Million of Annual Revenues
VANCOUVER, British Columbia, July 10, 2018 -- FinCanna Capital Corp. (“FinCanna”) (CSE:CALI) (OTCQB:FNNZF) a royalty
company for the U.S. licensed medical cannabis industry, has executed an Expanded Royalty Agreement with Refined Resin
Technologies Inc. (“Refined Resin”) formerly known as Gram Co Holdings LLC , of Oakland, California. Refined Resin 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.
FinCanna will fund US$3 million in tranches to complete the original Royalty Agreement transaction that was previously
announced under a binding term sheet in February 2018. In return, FinCanna will receive a tiered corporate royalty, ranging
from 14% to 5.0% of Refined Resin’s annual revenues, based upon agreed upon benchmarks.
Concurrently, FinCanna has also agreed to acquire an Additional Royalty for the purchase price of US$1.795 million, payment
that will be comprised of US$500,000 cash and the remainder paid in common shares of FinCanna. The Additional Royalty
provides FinCanna the right to receive a further royalty payment of 2% of Refined Resin’s revenues. Refined Resin has the
option to repurchase the Additional Royalty subject to certain terms.
With the inclusion of the 2% additional royalty consideration, the tiered royalty payments to FinCanna now range from 16% to
7.0% based on agreed upon benchmarks, with the combined royalty rate to FinCanna totaling 11.75% on the first US$160
million of annual revenues payable in perpetuity subject to certain buy-back options.
The additional payment will allow Refined Resin to increase production volumes to take advantage of strong market demand
that in turn will benefit FinCanna through accelerating speed to market and advancing the royalty payment schedule.
“We are very pleased to close this transaction with Refined Resin Technologies. It's an exciting opportunity for us on a number
of levels. The Refined Resin team is highly skilled in the production and management of a sophisticated extraction facility,”
said Andriyko Herchak, President and CEO of FinCanna Capital. “Additionally, the team has very deep connections in the
distribution and retail markets and are themselves very effective brand developers and marketers. Moreover, the potential
capacity of the facility, and its ability to produce high value-add products bode well for the financial future of the enterprise and
commensurately, outstanding value for FinCanna shareholders.”
Refined Resin has leased a facility in Oakland, California in which they are retrofitting a large, state-of-the-art medical cannabis
extraction laboratory, which is expected to be operating by the end of 2018. Refined Resin’s principals have extensive
experience in extraction, manufacturing and business operations and intend to be premier producers of bulk quantities of THC
distillate and various high value concentrates produced via hydrocarbon-based solvent extraction.
Refined Resin 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 in-house distribution and marketing expertise as part of their value add service offering.
The Royalty to FinCanna begins to accrue immediately upon disbursement of the initial advance payment. Refined Resin’s
Annual Revenues, for purposes of calculating the FinCanna royalty, are gross revenues less any sales returns calculated in
accordance with GAAP. All funds advanced in the transaction are allocated for the retrofitting and development of the Refined
Resin facility in Oakland and associated designated expenses.
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
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, 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.