Invest in Cannabis Co-Manufacturing with The Galley
Ryan Allway
April 29th, 2021
App, Exclusive, Top Story
The U.S. cannabis industry is projected to double in size to $41.5 billion by 2025, according to New Frontier Data, driven by strong consumer demand, greater spending per consumer and the legalization of cannabis in new states. While cannabis flower remains popular, concentrates, edibles and other manufactured products have opened the door to a wider consumer base.
Cannabis flower cultivation is fairly straightforward but concentrates, edibles and other products require a significant investment in manufacturing equipment and space. As a result, it’s cost prohibitive for many brands to manufacture their own products and a lot of legacy brands have been unable to get back into the market with next-gen products.
Let’s take a look at how cannabis co-manufacturing is solving these problems and how investors can participate in the space through companies like FinCanna Capital Corp. (CSE: CALI) (OTCQB: FNNZF) that offers exposure to this exciting industry subset.
CFN recently spoke with The Galley CEO and Co-Founder Annie Holman. Click below to listen:
What is Cannabis Co-Manufacturing?
Cannabis co-manufacturing facilities are designed to solve many of the challenges for cannabis brands looking to bring new products to market. These companies help multiple brands confidently bring their ideas to life, launch products and scale more efficiently over time.
Co-manufacturing services can include:
- Sourcing
- Formulation
- Packaging
- Graphic design
- Testing
- Manufacturing and Production
- Storage
Surprisingly, even large companies are beginning to co-manufacture products because they aren’t interested in the high capital costs of manufacturing their own products in-house. They can come in with a recipe and well-defined standard operating procedures and then it’s off to the races.
In some cases, co-manufacturing is also an easier way for existing brands to expand into new states. A cannabis brand in Colorado may be able to use a co-manufacturing operation in California to create and launch their successful recipes and products in California. It’s a lot more cost-effective than rebuilding operations in each state that the brand has products.
The Galley: A Best of Breed Co-Manufacturer
The Galley is a California-based co-manufacturer with an 8,300 sq. ft. facility built to FDA and CDPH standards focused on edibles, topicals, tinctures, chocolates, hard candies, gummies, pre-rolls, flower, vapes and beverages—along with anything else that cannabis brands can dream up. The company even provides distribution and fulfillment services across most of California.
Some of The Galley’s Manufacturing Equipment – Source: The Galley
The company’s experienced team includes culinary experts, nutritionists, herbal medicine experts and others that have joined together with the unified goal of making it as easy as possible for brands to turn their ideas into highly successful products. They’re a one-stop-shop for bringing cannabis products to market in an efficient and cost-effective way.
In addition to helping other brands, The Galley is developing a best-in-class line of products under its Big Fish brands. The company’s initial products include ocean or sea-themed products, such as bath salts that are a beach glass color and a round chocolate ball with a fast-acting powder that looks like a pearl—unique and hard to manufacture products.
The Galley’s CEO Annie Holman believes that, when cannabis opens up for interstate commerce or becomes federally legal, it will be similar to the wine industry. California will become a leader in the market because of its optimal climate, brand expertise and positioning, which will ideally position The Galley in the national market for manufactured cannabis products.
How to Invest in The Galley
FinCanna Capital Corp. (CSE: CALI) (OTCQB: FNNZF), a royalty company operating within the U.S. licensed cannabis industry, has a royalty agreement with The Galley whereby it receives 20% of the company’s revenue paid in cash each month. FinCanna also receives an annual supplemental payment that, when coupled with the royalty, ensures that it receives a minimum of 70% of The Galley’s after-tax net income paid in cash each year. If The Galley is sold, FinCanna is entitled to 70% of the sale proceeds.
Click here to receive an investor presentation and corporate updates
In addition to The Galley, FinCanna has royalty agreements with Cultivation Technologies Inc., a multi-award-winning extraction and manufacturing enterprise in Palm Desert, California, as well as ezGreen Compliance, a state-of-the-art enterprise compliance and point-of-sale software solution for licensed cannabis dispensaries and cultivators. These additional businesses provide investors with other sources of high-margin royalty income from different parts of the nascent cannabis industry.
Investors looking for exposure to cannabis co-manufacturing, along with diversified exposure to other parts of the cannabis industry, may want to take a closer look at FinCanna Capital Corp. (CSE: CALI) (OTCQB: FNNZF) as a unique way to capitalize on it.
For more information and to view the company’s disclaimer regarding forward-looking statements, visit the company’s website or download their investor presentation.
Disclaimer
The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: https://cannabisfn.com/legal-disclaimer/
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
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