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Trichome Financial Corp
Symbol TFC
Shares Issued 25,074,831
Close 2020-08-13 C$ 1.35
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Trichome to provide $8-million facility to Auxly

2020-08-14 09:23 ET - News Release

Mr. Michael Ruscetta reports


Trichome Financial Corp. has entered into an $8-million receivables purchase facility with Auxly Cannabis Group Inc. The facility will be available to several of Auxly's subsidiaries to finance accounts receivables from Canadian provincial distributors as well as other customers. Offering of accounts receivable for factoring will be at the discretion of Auxly and acceptance of any such accounts receivable for factoring will be at the discretion of Trichome Financial.

The facility is being financed through Trichome Financial Cannabis Private Credit LP with a majority of the commitments coming from third party investors, alongside the company's commitment to the facility of $500,000. This is the first bespoke financing facility provided by Trichome Private Credit, a credit investment fund structured for high-net-worth investors. Trichome Financial is the general partner of the fund, and will be responsible for the servicing and administration of the facility. Trichome Financial will earn certain fees as administrator, originator and participant in the fund.

"This transaction represents a landmark for Trichome Financial as we have now officially welcomed third party investors into Trichome Private Credit. Launching a fund for investors has been part of our strategy since inception, and we are thrilled to have executed on our plan in difficult market conditions. The fund will offer greater financial flexibility for Trichome Financial to close on our pipeline of bespoke transactions and diversify our revenue base. We are excited to partner with Auxly, given its strategy to differentiate itself though the production and sale of quality flower, edibles and vape products. We will continue to seek similar opportunities across the cannabis value chain with companies that can demonstrate a competitive advantage with a promising business model," commented Michael Ruscetta, chief executive officer of Trichome Financial.

Facility details

The facility provides Auxly with up to $8-million of non-dilutive capital, to be drawn against qualifying receivables and matures in 12 months. Trichome Private Credit will advance 80 per cent of the face amount of qualifying receivables, allowing Auxly to finance up to $10-million of accounts receivable. Obligations of Auxly and its subsidiaries under the facility are secured by a first-ranking perfected security interest in cannabis-related accounts receivable, and is guaranteed by Auxly and several of its subsidiaries.

About Trichome Financial Corp.

Trichome Financial is a specialty finance company focused on providing flexible and creative credit 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. Trichome Financial's experienced founders and management team have 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 Financial 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.

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