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James E Wagner Cultivation Corp
Symbol JWCA
Shares Issued 96,281,609
Close 2019-11-06 C$ 0.38
Recent Sedar Documents

James E. Wagner signs $4M loan deal with Trichome

2019-11-06 10:46 ET - News Release

Mr. Nathan Woodworth reports

JAMES E. WAGNER CULTIVATION CORPORATION ANNOUNCES CLOSING OF $4 MILLION LOAN AGREEMENT AND ISSUANCE OF BONUS SHARES AND WARRANTS

James E. Wagner Cultivation Corp., along with certain of its subsidiaries, has entered into a loan agreement with Trichome Financial Corp. for a loan in the amount of $4-million to be advanced to James in two tranches. The first tranche of the loan in the amount of $2.85-million will be advanced to James upon the satisfaction of customary closing conditions and is expected imminently. The second tranche of the loan, in the amount of $1.15-million will be advanced to James 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-per-cent original issue discount was applied to the first tranche. A 5-per-cent 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 cent 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 Nov. 6, 2021. James shall use the net proceeds of the loan to finance the completion of construction of its facility located at 530 Manitou Dr. in Kitchener, Ont., to finance the launch of new products and for general working capital requirements. As security for the loan, James 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 James) of James and each of the direct and indirect wholly owned subsidiaries of James.

As consideration for providing the first tranche and pursuant to TSX Venture Exchange Policy 5.1 -- Loans, Loan Bonuses, Finder's Fees and Commissions, James intends to issue the lender 1,696,385 warrants to purchase common shares of James and 984,208 common shares of James.

Each bonus warrant will be exercisable for one common share of James at an exercise price of 42 cents being a 5-per-cent premium to the trading price of the common shares of James at market close on the last trading day preceding this announcement. The bonus warrants will be exercisable for a period of two years from the date of issuance and both the bonus warrants and bonus shares will be subject to a four-month hold period in accordance with applicable Canadian securities laws. The issuance of the loan bonus is subject to the final approval of the TSX-V.

Subject to the approval of the TSX-V, a similar loan bonus is anticipated in relation to the second tranche with pricing reflective of the then-current market price of the common shares of James.

About James E. Wagner Cultivation Corp.

James's wholly owned subsidiary is a licensed producer under the Cannabis Regulations, formerly the Access to Cannabis for Medical Purposes Regulations. James is a premium cannabis brand, focusing on producing clean, consistent cannabis. James uses its advanced and proprietary dual droplet aeroponic platform named GrowthStorm.

We seek Safe Harbor.

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