VANCOUVER, BC / ACCESSWIRE / August 31, 2020 / FinCanna Capital Corp. ("FinCanna") (CSE:CALI)(OTCQB:FNNZF), is pleased to announce that it has acquired all the assets and economic interests of its royalty portfolio company Green Compliance Inc. ("Green Compliance"). Green Compliance's ezGreen software provides state-of-the-art enterprise compliance and point-of-sale (POS) software solutions for licensed cannabis dispensaries and cultivators in the United States.
The asset acquisition occurred as a result of FinCanna and Green Compliance being unable to reach a resolution regarding the restructuring of their royalty agreement. As a result, FinCanna and Green Compliance came to an agreement whereby Green Compliance would assign all of its assets to FinCanna in exchange for FinCanna foregoing its rights to recover its royalty investment from Green Compliance.
The original royalty agreement called for FinCanna to receive a perpetual royalty equal to 10% of consolidated gross revenues of Green Compliance upon FinCanna funding US$3 million, subject to certain buyback conditions. FinCanna has funded $1.75 million to date. As a result of this equity re-structuring, FinCanna now owns 100% of the assets and economic interests of Green Compliance.
FinCanna CEO, Andriyko Herchak, comments, "We are very pleased with this outcome whereby we now own 100% of the assets, including the ezGreen software, and the economic interests of Green Compliance. We believe the ezGreen software is the best on the market and we see great potential for sales growth. We also want to acknowledge the cooperation of Green Compliance shareholders in completing this transaction. We will provide updates with respect to our future plans for ezGreen and are confident that this acquisition will be a strong win for our shareholders."
Green Compliance's ezGreen software is the only HIPAA (Health Insurance Portability and Accountability Act) certified point-of-sale software in the market. It was developed with Automated Healthcare Solutions ("AHCS"), one of the largest point of care software solution providers, with an 18-year operational history in the medical sector and supports 3,500+ active physician operated clinics and dispensaries. The ezGreen software was created to provide similar compliance guidelines, standards, and disciplines to the licensed cannabis industry at the U.S. state and federal levels as is required in the pharmaceutical industry.
The ezGreen proprietary Business Intelligence Dashboard (BID) is a proven front-to-back compliance solution that supports both HIPAA and State Cannabis Control Boards by ensuring secure customer data storage and transmission that protects customers from potential security breaches and financial and criminal liability resulting from such violations.
The ezGreen BID platform is comprised of a robust suite of tools & features including,
- free business analytics, customizable for individual dispensary retailers needs for sales, inventory, accounting, and workflow management capabilities
- a proven comprehensive tax reporting solution to automate essential revenue reporting at the city, county and state levels
- full integration with Metrc (Marijuana Enforcement Tracking Reporting Compliance) the mandatory compliance reporting system that provides, tracking and tracing for government agencies regulating legalized marijuana in California and twelve other states
- a comprehensive rewards program along with API integration for digital menu and home delivery applications.
Green Compliance has continued to develop and operate its POS system throughout the Covid pandemic. Currently focused on California and certain other states, Green Compliance has built up a robust affiliate network and has been operating successfully in an MSO (Multi Site Operation) in California. Green Compliance has also signed an alliance agreement with one of the largest distributors in California.
About FinCanna Capital Corp.
FinCanna is a royalty company that provides growth capital to rapidly emerging private companies operating in the licensed U.S cannabis industry. The Company earns its revenue from royalties paid by its investee companies that are calculated based on a percentage of their total revenues.
FinCanna's scalable royalty model provides an attractive alternative or complement to debt or equity financing for its investee companies. FinCanna is focused on delivering high-impact returns to its shareholders by way of a strategically diversified investment portfolio.
FinCanna Capital Corp.
Andriyko Herchak, CEO & Director
Cautionary Note Regarding Forward-Looking Statements
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, ezGreen software, the ability of Green Compliance to expand operations and generate sales and revenues, 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.
SOURCE: FinCanna Capital Corp.