Provides Royalty Financing for Cannabis Extraction Equipment
TidalRoyalty Corp. (RLTY.U.C) a leading provider of royalty financing to licensed U.S. cannabis operators, announced that it has entered into a letter of intent with Vitalis Extraction Technology to provide royalty financing to U.S. licensed operators purchasing products from Vitalis’s premium range of commercial large-scale extraction equipment solutions. Vitalis, a leading extraction equipment provider, is renowned for their engineering, producing some of the highest-flowing industrial supercritical CO2 extraction systems for the cannabis industry.
Tidal Royalty will provide Vitalis with a facility up to US $5.0MM to finance extraction equipment purchases by U.S. licensed operators. Vitalis customers that utilize the financing pay Tidal Royalty a cash royalty based on the number of grams of oil produced.
The closing of the transaction contemplated by the LOI is subject to, among other things, the successful negotiation of definitive agreements, which is currently in progress.
Tidal Royalty expects to announce further particulars in respect to the contemplated transaction with Vitalis upon the execution of a definitive agreement between the parties.
“We are very excited to apply our royalty financing product to such a promising vertical of the cannabis market,” said Paul Rosen, CEO & Chairman of Tidal Royalty. “We have been following Vitalis’ success and are very impressed with the quality of their extraction technology. We expect that adding Tidal Royalty’s innovative financing solutions as an option will create real value for licensed operators. The immediate demand that we are seeing is very promising and seems to reflect that.”
In addition to this LOI, the company has entered into letters of intent for large-scale expansion projects in California, Nevada and Massachusetts.
Tidal Royalty is also in the process of evaluating multiple additional financing opportunities across the U.S., including in California, Florida, Arizona, Ohio, Michigan, New York and Nevada.