This press release has a correction to the version published with the same title at 11:00am EST on June 11, 2019.
Trichome Financial Corp. (“Trichome” or the “Company”) is pleased to announce that it has signed a non-binding Indicative Term Sheet for a $5.5 million Senior Secured Term Loan (the “Secured Loan”) to MYM Nutraceuticals Inc. (“MYM”)(CNSX:MYM.CN)(OTCBB:MYMMF). The Secured Loan will be advanced in a first tranche of $3.5 million on closing, and a conditional second tranche of $2.0 million no earlier than two months after closing. Closing of the Secured Loan is subject to MYM receiving a cultivation license from Health Canada for its facility located in Laval, Québec. The proceeds of the Secured Loan will be used by MYM to fund several growth initiatives, including its operations in Saskatchewan, Nevada, Laval and Colombia.
“We are thoroughly impressed with the level of expertise and sophistication that MYM’s new senior leadership team has displayed as they execute a pivot towards becoming leaders in all aspects of CBD-rich hemp,” said Michael Ruscetta, CEO of Trichome. “The market for our uniquely structured capital solutions to the legal cannabis sector is large and this transaction is another example of Trichome providing flexible and timely growth capital, fully secured against all the assets and licenses of MYM, which we expect will deliver extremely attractive returns.”
Secured Loan Details
The term of the Secured Loan is 12 months from the date of closing, and Trichome will have an option to extend the term by an additional 6 months. Interest will be paid monthly in cash at a rate of 12.0% per annum, and Trichome will also receive up to 5,000,000 warrants to purchase common shares of MYM as additional consideration.
The Secured Loan is secured by a first lien on MYM’s current and future tangible and intangible assets, with some exceptions. Entry into the Secured Loan is conditional upon receipt by MYM of a cultivation license from Health Canada for its facility in Laval, Québec, approval of the TSX Venture Exchange, and other conditions.
Howard Steinberg, CEO and director of MYM, is also a director of Trichome and as such has recused himself from Trichome’s board on this matter.
About Trichome Financial Corp.Trichome is a specialty finance company focused on providing flexible and creative capital solutions to the global legal cannabis market. Trichome was created to address the lack of credit availability in the large, growing and increasingly complex cannabis market. Founded by industry leaders Origin House (CNSX:OH.CN) and Stoic Advisory, Trichome’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 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’s current assets are all based in Canada and it has no operations or assets in the United States. Trichome is currently seeking the approval of shareholders for its acquisition by 22 Capital Corp., a TSX Venture Exchange capital pool company. For more information, please visit us at www.trichomefinancial.com or @trichomefinance on Twitter.
Cautionary Note Regarding Forward-Looking Statements
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: entry into and closing of the Secured Loan; MYM’s receipt of a license from Health Canada; approval of the Secured Loan by the TSX Venture Exchange; MYM’s growth plans; and Trichome’s growth plans. 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 assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.
SOURCE Trichome Financial Corp.
View original content: http://www.newswire.ca/en/releases/archive/June2019/11/c8811.html
SOURCE: Trichome Financial Corp.
Michael Ruscetta, CEO, firstname.lastname@example.org; Marc Charbin, InvestorRelations, (416) 467-5229, email@example.com