Marijuana companies looking to access the debt market to expand their business have a new lender they can turn to for funding.
Trichome Yield Corp. will provide debt financing and offer a suite of professional services for emerging and established cannabis companies, both in Canada and around the world, according to a news release.
The new venture is a subsidiary of Canada’s CannaRoyalty, which invests in Canadian and U.S.-based cannabis companies.
According to CannaRoyalty, Trichome’s financing offers less dilution than equity or cannabis “offtake” alternatives – two of the most common ways to raise capital in the marijuana sector.
Trichome was co-founded along with real-estate investor Sprott Inc. and Stoic Advisory, an independent cannabis-focused consulting firm.
Debt financing is generally less dilutive than equity financing.
It allows business owners to own a larger share of the companies they are building, making it more appealing to fast-growing companies in the sector.
But debt has been hard to come by for capital-hungry marijuana companies in the absence of Canada’s biggest lenders, even as credit unions have led the way when it comes to offering debt.
“The market is missing a straightforward ‘one-size fits all’ asset-backed investment product,” Jarrett said.
Matt Lamers can be reached at [email protected]
To sign up for our weekly Canada marijuana business newsletter, click here.