Shares of Trichome Financial to begin trading on the Canadian Securities Exchange today, December 16, 2019
TORONTO, Dec. 16, 2019 /CNW/ - Trichome Financial Corp. ("Trichome Financial" or the "Company") (CSE: TFC) today announced that the Company has signed a non-binding term sheet to provide up to $11.5 million in senior secured debt financing to Ontario Cannabis Holdings Corp. ("OCH") or affiliates thereof.
Trichome Financial has built considerable expertise in the retail sector, with successful loans made to both C.G.S Foods Inc. (d/b/a Ganjika House), a lottery winner from the first round of the Alcohol and Gaming Commission of Ontario ("AGCO") licensing process in March 2019, and 180 Smoke prior to its sale to Origin House (CSE: OH), as well as reviewing numerous retail opportunities across Canada. Through this strategic relationship with OCH, the Company plans to provide growth capital for the buildout and initial inventory purchases of new corporately owned OCH stores (operating under the OCH flagship retail brand "Corner Cannabis") pending OCH's receipt of applicable regulatory licensing, which may occur as early as March 2020.
OCH was founded by a highly experienced team with a proven track record in the retail cannabis industry. Prior to entering the Ontario market, OCH's management team founded and built one of Canada's largest retail cannabis chains, NewLeaf Cannabis, to 25 locations before selling to Meta Growth (f/k/a National Access Cannabis) for aggregate gross proceeds of approximately $37.5 million.
"We view the recent move by the Ontario government towards an open market for private cannabis retail as a significant opportunity for Trichome Financial and we are excited to bring our capital, knowledge and relationships to partner with proven and sophisticated retail operators such as OCH," said Michael Ruscetta, CEO of Trichome Financial. "OCH has a collection of strategically located store-front locations across Ontario, providing it with a significant opportunity to scale its growth in the near term with the opening of the Ontario market."
"With the Ontario market opening, we are excited to begin the bricks and mortar build-out and to execute on a growth strategy to see OCH become a leading national retailer for the second time around," said Jon Conquergood, CEO of OCH. "We learned invaluable lessons through the highly successful build-out and operations of NewLeaf Cannabis: most importantly, that through authenticity and relentless attention to our customers in a welcoming community-based format, we will achieve long-term consumer loyalty and sustainability in this competitive industry."
CSE Listing Details
Trichome Financial is pleased to announce that its common shares will commence trading as of December 16, 2019 on the Canadian Securities Exchange (the "CSE"). Listing on the CSE, together with delisting from the TSX Venture Exchange, will allow the Company to begin lending to the cannabis sector in the United States.
In accordance with the requirements of listing on the CSE, Trichome Financial filed a Listing Statement on December 2, 2019 which is available on www.sedar.com.
The Company's common shares will continue to trade under the ticker "TFC" and no action is required by current shareholders to trade their shares on the CSE.
Delisting of Trichome Financial's common shares has been accepted by the TSX Venture Exchange. Trichome Financial's common shares will cease to trade on the TSX Venture Exchange as of the close of trading on December 16, 2019.
About Trichome Financial Corp.
Trichome Financial is a specialty finance company focused on providing flexible and creative credit solutions to the global legal cannabis market. Trichome Financial was created to address the lack of credit availability in the large, growing and increasingly complex cannabis market. Founded by industry leaders Origin House and Stoic Advisory, Trichome Financial's experienced management team has a unique edge to capitalize on proprietary deal flow and industry insight while developing a first mover advantage as a global cannabis focused specialty finance company. Trichome Financial provides customized financing solutions across the industry value chain to support growth, capital expenditures, mergers, acquisitions, working capital and other needs. Leveraging the combined resources and knowledge of its founders, it is able to offer significant value-added financial, product, market and operational support to its partner companies. Trichome Financial's current assets are all based in Canada and it currently has no operations or assets in the United States.
For further information about Trichome Financial please visit us at www.trichomefinancial.com or @trichomefinance on Twitter and refer to the joint information circular of Trichome Financial and 22 Capital dated May 29, 2019 which is available on the Company's SEDAR profile at www.sedar.com.
About Ontario Cannabis Holdings Corp.
Ontario Cannabis Holdings is a privately-owned Canadian company focused on building a national retail cannabis brand through a community-focused and accessible retail platform. Founded by a highly experienced executive team with a proven and successful track record in cannabis retail, OCH is positioned to grow rapidly across Canada.
Neither the CSE nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this press release.
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things: future funding of OCH by Trichome Financial; OCH obtaining any license in Ontario to retail cannabis and the timing of any such license; the future growth of OCH's business in Ontario and elsewhere in Canada; reform of the regulatory landscape for cannabis retail in Ontario; and future lending by Trichome Financial to any particular borrower, including any borrower in the Ontario or Canadian cannabis retail industry or any borrower with cannabis-related operations in the United States. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; and the delay or failure to receive board, shareholder or regulatory approvals. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, Trichome Financial assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.
SOURCE Trichome Financial Corp.