A Canadian court on Tuesday approved the nearly $10 million sale of debt-ridden marijuana grower James E. Wagner Cultivation Corp. to a cannabis lender, in a deal the company said will prevent a bankruptcy.
A unit of Trichome Financial Corp. will scoop up virtually all of James E. Wagner's assets as part of the deal cleared by the Ontario court overseeing its restructuring. Trichome set a price floor for the sale through a stalking horse bid of 13.45 million Canadian dollars, which went unmatched. The deal is expected to close June 30.
James E. Wagner told the court the sale would preserve the company's business and save roughly 160 jobs. Court filings show 26 potential buyers signed confidentiality agreements and conducted due diligence on the company, although none floated bids.
Toronto-based Trichome, a cannabis-focused investment shop, tossed James E. Wagner a $2.8 million lifeline in April as the grower sought creditor protection under a Canadian law known as the Companies' Creditors Arrangement Act, which also allowed the company to stay legal proceedings against it while it restructured.
Read more at law360.com