Mr. Andriyko Herchak reports
FINCANNA'S FLAGSHIP INVESTMENT SECURES LARGEST POWER SUPPLY IN COACHELLA'S CANNABIS ZONE
Fincanna Capital Corp.'s flagship investment in California, Cultivation Technologies Inc. (CTI), has completed its obligations to secure an additional five megawatts of power from the local utility company, Imperial Irrigation District (IID). This increases CTI's total available power to seven megawatts, the largest power commitment in the Coachella cannabis zone from IID. The new power upgrade provides requisite power for construction and operation of the planned Coachella campus.
According to CTI knowledge and area stakeholders, no other viable short-term option exists for significant power in the Coachella cannabis zone, creating barriers for other development involving indoor cultivation.
Fincanna chief executive officer, Andriyko Herchak, commented: "CTI securing this additional five megawatts represents a significant milestone for the development of the project. The operators of CTI continue to advance milestones that are imperative for the development of what is planned to be a leading medical cannabis facility."
CTI currently holds local permits for the Coachella campus that allow for construction of the project and allow CTI to conduct medical cannabis operations on site, subject to regulatory requirements. CTI plans to construct a cultivation, extraction, manufacturing and distribution facility in phases on its Coachella property, a fully entitled six-acre site which it owns outright in Coachella, Calif.
Additionally, CTI has signed a conditional lease-build-to-suit agreement for its Coachella campus with Graceland Industries Inc., an entity controlled by Michael Barker of Barker Pacific Group Inc., a real estate developer based in Los Angeles, Calif. Barker Pacific Group Inc. has completed, developed or redeveloped over $2.5-billion (U.S.) in commercial real estate projects.
Pursuant to the financing agreement between Fincanna and CTI, Fincanna has agreed to finance certain amounts of capital to CTI to purchase a royalty equalling up to 14 per cent of CTI's revenues generated by the Coachella campus. On Jan. 15, 2018, Fincanna announced that the original structure was adjusted to provide 14 per cent of revenues of the Coachella campus paid as a royalty (previously 10 per cent to be paid as a dividend).
About Cultivation Technologies
Cultivation Technologies Inc. provides infrastructure, technology and branding to the licensed medical cannabis industry. The first major project for the company is in Coachella, Calif., which will span six acres featuring cultivation centres, extraction and manufacturing facilities, a testing lab, a distribution hub, and a centralized processing centre.
About Fincanna Capital Corp.
Fincanna is a royalty company for the licensed medical cannabis industry, with a focus on California. Fincanna, led by a team of finance and industry experts, is building its portfolio of investments in scalable, best-in-class projects. Fincanna's flagship investment is with Cultivation Technologies Inc. (CTI) to provide financing for its fully entitled, large-scale indoor medical cannabis facility to be developed in Coachella, Southern California. This Coachella campus will be a state-of-the-art facility that will include cultivation, extraction, manufacturing, testing and distribution.
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