Toronto-based cannabis sector financier Trichome Financial Corp. received court approval to complete its acquisition of troubled Ontario marijuana grower James E. Wagner Cultivation Corp. (JWC).
Trichome, which had a debtor-in-possession loan deal with JWC, announced its successful stalking horse bid for the company in May.
The total value of the deal is estimated at 13 million Canadian dollars ($9.6 million), Trichome said in a news release Wednesday announcing the ruling.
Trichome’s new assets will include JWC’s 114,000-square-foot indoor cultivation facility, said to have an annual capacity of about 7,000 kilograms (15,432 pounds) of cannabis per year.
The Toronto company plans to use those assets “as a base upon which to build a larger platform focused on the production and distribution of high-quality cannabis products, disciplined capital allocation and free cash-flow generation,” Trichome CEO Michael Ruscetta said in the release.
The transaction is expected to be completed by June 30.