FinCanna signs binding term sheet with Cannabis Extraction Company in Oakland, California
OREANDA-NEWS. FinCanna Capital Corp. (“FinCanna”) (CSE:CALI), have signed a binding term sheet with Gram Co Holdings LLC (“Gram Co”), subject to due diligence by FinCanna. Gram Co, based in Oakland, California, is a cannabinoid research and refinement facility focussed on the medical cannabis industry to provide B2B and B2C products and services to licensed medical dispensaries, infused product manufacturers and numerous others in the cannabis supply chain.
Gram Co 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 the third quarter of 2018. Gram Co plans to be a premier producer of bulk quantities of THC distillate and various concentrates produced via hydrocarbon-based solvent extraction. Gram Co also plans to provide white labeling services to licensed brand and infused product manufacturers who do not have direct access to compliant production facilities. Brands and manufacturers who work in conjunction with Gram Co will also be able to utilize in house distribution and marketing services as a part of operational collaborations.
Gram Co principles have extensive experience in extraction, manufacturing and business operations, and will also be bringing over their existing brand from their registered collective “California Extracts” to operate under the Gram Co family. California Extracts already has an existing industry following and market presence.
Under the term sheet, FinCanna would fund US$3 million in tranches. In return, FinCanna will receive a tiered corporate royalty, adjusted based on revenues levels, ranging from 14% to 7.5% of Gram Co’s revenues.
FinCanna CEO, Andriyko Herchak, comments, “Statistics clearly show rapidly growing demand for high quality extracts to support the medical cannabis industry, and Gram Co, based in Oakland, is ideally positioned to service the very large Northern California market. We continue to expand our diversified royalty portfolio of investee companies, and this investment supports our thesis of best-in-class operations in the U.S. licensed medical cannabis sector.”
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.