FinCanna Capital Corp. announced that it has sold a portion of its unutilized extraction equipment to investee company, Cultivation Technologies Inc. ("CTI"), located in Palm Desert, CA, for an increased royalty stream. CTI management estimates the new manufacturing equipment will increase their current volume capacity by as much as 500% of which FinCanna will receive an increased royalty stream on CTI's top line revenue. This extraction system provides the flexibility to select either butane, propane, or ethanol manufacturing methods and delivers faster throughput, expanding CTI's potential to increase its volume of higher margin butane-based products as well as the ability to add lower cost, higher velocity and higher volume ethanol-based and propane-based offerings to its product mix. The increased output potential and diversity of product offerings position CTI to ramp up its revenues based on current and expected demand. The new equipment fits seamlessly into CTI's facility that was initially designed with excess space with the expectation of adding high-volume extraction capability at the appropriate time. The equipment is scheduled to arrive on site this month for installation with commercial production expected by April 2021. In exchange for this equipment, FinCanna will receive the following: (a) the existing 10% royalty will apply on all revenues generated by CTI, including the additional revenues generated by this new system, with 5% paid in cash every month and 5% deferred until certain triggering events; and (b) an additional 10% royalty on all revenues generated by this new system, paid every month, until such time that CTI pays a total of USD 947,000 for total amounts owing to FinCanna plus future accrued interest during this repayment period. FinCanna is primarily focused on the California cannabis industry, which generated $3.1 billion in 2019 revenue, according to Arcview Market Research and BDS Analytics, making it the cannabis market in North America. Prohibition Partners projects that the U.S. licensed cannabis market is projected to reach $43.9 billion by 2024.