Streaming

CannaVentures has identified the financing void in the US cannabis market as the rate limiting factor in the growth of the cannabis industry. CannaVentures is more than just a financing vehicle for new or existing cash strapped cannabis companies. CannaVentures is a trusted strategic partner with the tools and experience to assist companies at all stages of evolution. CannaVentures is taking an institutional approach towards cannabis financing that will allow new and existing cannabis companies to better define their pathway to success. 

What is Streaming ?

CannaVentures will utilize monies raised in the public markets to invest in cannabusinesses with great management, a well vetted plan, and CannaVentures consulting contracts in place to ensure success. In addition to receiving consulting fees, CannaVentures will have a right to purchase at cost (approximately) a negotiated percentage of crop or processed yield, structured as a royalty, and a small equity ownership of the partner client’s business. There are no recurring costs or daily maintenance expenditures associated with these income streams. Each additional investment not only adds to CannaVentures‘ royalty income stream but also contributes to geographic and product-based diversification.

Streaming is a unique financing arrangement first used in the precious metal industry by the company Wheaton Precious Metals. The streaming model is simple and genius. Simply put, a streaming company (like CannaVentures) makes an upfront payment to a receiving company (like a new or existing cannabis company) in consideration for the right to purchase a future stream of product (harvested marijuana or processed oil) in the form of a royalty at a pre-determined price and length of time. The streaming company may not receive an interest payment, nor would they receive a large equity ownership in the receiving company. A capital infusion using a streaming method enables cannabis companies to receive access to funds, to keep the vast majority of its ownership, and to access a knowledgeable, experienced team of cannabis professionals.