Trichome completes acquisition of James E. Wagner cannabis assets

Trichome Financial has wrapped up its acquisition of the assets of James E. Wagner Cultivation Corp. (JWC), the cannabis industry lender said this week.

The company also said its subsidiary, Trichome JWC Acquisition Corp. (TJAC), has received licenses from Health Canada to operate JWC’s two marijuana facilities in Ontario.

The announcement on Monday caps off a monthslong process in which JWC entered creditor protection and put its assets up for sale.

Trichome’s bid for JWC was declared successful in May.

According to the Trichome news release, the creditor-protection proceedings and acquisition process extinguished approximately 19 million Canadian dollars ($14.6 million) of JWC’s third-party liabilities.

Trichome’s total consideration for JWC’s assets was CA$16 million.

The restructured company’s full-time equivalent staff levels have been reduced by about 40%, to 107 employees, saving roughly CA$3 million per year, according to Trichome.

TJAC said it has brought new cannabis genetics into JWC’s portfolio, allowing the company to offer new marijuana cultivars going forward.

“Many new products are being assessed and tested, including hash, which we anticipate will hit the shelves before the end of 2020,” the company noted in the release.

Trichome’s new guidance for TJAC includes net revenue of CA$22 million-CA$24 million for the 2021 fiscal year, with annual flower production of 5,700 kilograms (12,566 pounds).