Fincanna Capital Corp (OTCMKTS:FNNZF) raised funds of $2.5 million through a convertible debenture mechanism. The expiry date for debentures is fixed on February 8, 2023. The company will use the net proceeds royalty investment opportunities, general corporate purposes, and as working capital for ongoing projects.
The debentures shall be converted into Fincanna common shares. Also, 5,000 share purchase warrants will be issued to the debenture holders. The management team of Fincanna subscribed for debentures worth $500,000.
Strengthens its balance sheet
Andriyko Herchak, CEO of Fincanna said the company is excited to receive strong support for debenture offerings from the management, shareholders, and debenture holders.
Previously extended debentures, which are convertible, along with this latest offering strengthens the balance sheet of Fincanna.
Restructures royalty accord
Fincanna restructured the royalty accord with QVI Inc, its portfolio company. As per the terms of the deal, QVI will receive additional capital of $1.5 million from Fincanna for working capital needs to clinch opportunities for enhanced sales soon. It will pay 20% of its revenues in cash to Fincanna monthly. QVI manages Sonoma County, a CA-based cannabis-infused production facility.
Founder and CEO of QVI, Annie Holman said the company is managing its operations in the edibles segment with financial support from Fincanna though hurdles remain. It is adding new customers and interesting brands are sending their inquiries.
Andriyko said the company is excited to see QVI operational and receiving significant demand for its manufacturing services. He said fund support from Fincanna allows QVI to become a contract manufacturer for premium services in California.
Receives distribution license
QVI, which engages as The Galley, received a distribution type 11 license from the Bureau of Cannabis Control in California. It allows the company to provide full-spectrum of licensed services. Galley becomes a one-stop shop for out of state and domestic brands.
Galley can now deliver cannabis goods to retail outlets besides arranging QA checks and testing. Its facility is built complying with CDPH and FDA standards and engages in the production of Hard Candies, Chocolates, tinctures, topicals, Pre-rolls, and Vapes.
CEO of Vancouver based Fincanna will host a live interactive event online on July 9, 2020, to address queries raised by investors.
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