Trichome Financial gets court approval to acquire James E. Wagner

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).

JWC entered creditor protection in April.

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.