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James E. Wagner Cultivation Announces Entering Into of Non-Binding Term Sheet With Trichome Financial Corp. for Loan of $4 Million
James E. Wagner Cultivation Announces Entering Into of Non-Binding Term Sheet With Trichome Financial Corp. for Loan of $4 Million.
About this update from James E Wagner Cultivation Corp
[{"type":"text","content":"\n KITCHENER, Ontario, Oct. 04, 2019 (GLOBE NEWSWIRE) -- James E. Wagner Cultivation Corporation (“JWC” or the “Corporation”) (TSXV: JWCA), is pleased to announce that on October 3, 2019, JWC entered into a non-binding, indicative term sheet with Trichome Financial Corp. (“Trichome Financial”), summarizing the principal terms and conditions of a proposed loan of $4,000,000 to be advanced by Trichome Financial to JWC in two tranches (the “Term Sheet”). Pursuant to the Term Sheet, the first tranche, in the amount of $2,850,000 (the “First Tranche Advance”), shall be advanced by Trichome Financial to JWC upon the execution of a definitive agreement between the parties (the “Definitive Agreement”), scheduled to take place on or before October 18, 2019 (such date or such other date as agreed by the parties, the “Closing Date”). The second tranche, in the amount of $1,150,000, shall be advanced by Trichome Financial to JWC upon satisfaction of certain conditions precedent in favour of Trichome Financial (the “Second Tranche Advance”, and together with the First Tranche Advance, the “Loan”). The term of the Loan shall be for two years calculated from the Closing Date, and shall be payable in full upon maturity. Interest on the Loan shall be paid monthly in cash at a rate of 9.25% per annum on the then outstanding amount of the Loan, with all outstanding interest payable upon maturity. JWC shall use the net proceeds of the Loan to finance construction and capital expenditures related to phases 2C and 3 of its facility located at 530 Manitou Drive in Kitchener, Ontario and for general working capital requirements (the “Use of Proceeds”). The Use of Proceeds shall be further defined in the Definitive Agreement. As security for the Loan, JWC shall provide Trichome Financial with a perfected, first lien on current and future tangible and intangible assets ‎and equity interests (including a share pledge from all active ‎subsidiaries) of JWC and each of the direct and indirect wholly owned subsidiaries organized ‎under JWC. In the event JWC, for whatever reason, cannot or elects not to close the First Tranche Advance portion of the Loan on or before the Closing Date, or any mutual extension thereof, JWC sha...