Trichome Financial has been confirmed as the successful bidder for the business and assets of James E. Wagner Cultivation Corp (“JWC”). It is expected that a Sale Approval Motion will be heard on or around May 29, 2020 by the Ontario Superior Court of Justice (Commercial List) (the “Court”) and a final closing will occur upon Health Canada license approval. "The business and assets of JWC are being purchased free and clear of any liabilities for an effective purchase price of approximately $13 million, being the value of Trichome Financial’s pre-filing secured claim of $7.5 million plus the estimated amount of the outstanding debtor-in-possession financing upon closing," the team with the company explains.
“Having been invested in JWC since February 2019, Trichome Financial had a very good understanding of JWC’s business and assets and was prepared to be the stalking horse in the court-approved SISP. A comprehensive operational review has been underway since April 9, 2020 led by Howard Steinberg in his capacity as Chief Restructuring Officer and a team of industry experts. The team of industry experts retained by JWC during these proceedings has worked with Mr. Steinberg to develop an operating plan that we believe will allow JWC to grow and prosper over the long term. We welcome working with the hard-working employees at JWC to make this a success for all,” commented Michael Ruscetta, Chief Executive Officer of Trichome Financial.
"With the significant insight gained on operations, sales, distribution, spending and strategy since making its initial loan to JWC, Trichome Financial developed a business plan which forecasts production of 7,000 kgs per year of high-quality cannabis generating approximately $10 million of EBITDA within 12 months with no incremental capital expenditures."
“Many thanks to the entire team who worked together seamlessly and put their heart into JWC and in particular James Andrews, John Fowler, Doug Wilson, David Hyde and Sarah Seale. I am excited to continue working with these individuals and the very talented people at JWC and look forward to the opportunity to create significant value for stakeholders,” said Mr. Steinberg.