Business
James E. Wagner Cultivation Corporation Announces Closing of $4 Million Loan Agreement and Issuance of Bonus Shares and Warrants
James E. Wagner Cultivation Corporation Announces Closing of $4 Million Loan Agreement and Issuance of Bonus Shares and Warrants.
About this update from James E Wagner Cultivation Corp
[{"type":"text","content":"\n KITCHENER, Ontario, Nov. 06, 2019 (GLOBE NEWSWIRE) -- James E. Wagner Cultivation Corporation (“JWC” or the “Corporation”) (TSX VENTURE: JWCA; OTCQX: JWCAF), is pleased to announce that on November 6, 2019 (the “Closing Date”), it, along with certain of its subsidiaries, entered into a loan agreement (the “Loan Agreement”) with Trichome Financial Corp. (the “Lender”) for a loan in the amount of CDN$4,000,000 (the “Loan”) to be advanced to JWC in two tranches. The first tranche of the Loan in the amount of CDN$2,850,000 (the “First Tranche”) will be advanced to JWC upon the satisfaction of customary closing conditions and is expected imminently. The second tranche of the Loan, in the amount of CDN$1,150,000 (the “Second Tranche”) will be advanced to JWC upon satisfaction of certain further conditions precedent set out in the Loan Agreement. A set-up fee in the amount of $60,000 and a 5% original issue discount was applied to the First Tranche. A 5% original issue discount will also be applied to the Second Tranche at the time it is advanced. 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. The Loan shall be payable in full on November 6, 2021. JWC shall use the net proceeds of the Loan to finance the completion of construction of its facility located at 530 Manitou Drive in Kitchener, Ontario, to finance the launch of new products, and for general working capital requirements. As security for the Loan, JWC has provided the Lender with a perfected, first lien on current and future tangible and intangible assets ‎and equity interests (including a share pledge from all subsidiaries of JWC) of JWC and each of the direct and indirect wholly-owned subsidiaries of JWC.  As consideration for providing the First Tranche and pursuant to TSX Venture Exchange (“TSXV”) Policy 5.1 – Loans, Loan Bonuses, Finder’s Fees and Commissions, JWC intends to issue the Lender 1,696,385 warrants to purchase common shares of JWC (the “Bonus Warrants”), and 984,208 common shares of JWC (the “Bonus Shares” and together with the Bonus Warrants, the “Loan Bonus”). Eac...