Amended and restated loan increased to $7.5 million from $3.5 million as James E. Wagner continues to deliver on operational milestones





Receivables Financing Facility represents new product for Trichome Financial borrowers

TORONTO, Nov. 7, 2019 /CNW/ - Trichome Financial Corp. (the "Company" or "Trichome Financial") (TSXV: TFC) is pleased to announce that on November 6, 2019 it closed a follow-on loan to James E. Wagner Cultivation Corporation ("JWC") (TSXV:JWCA) of up to an incremental $4.0 million, by way of an amendment and restatement of the Company's existing loan agreement with JWC, for a total aggregate loan of up to $7.5 million (the "Amended Loan"). Trichome Financial previously advanced $3.5 million to JWC on February 19, 2019. JWC is a licensed producer under the Cannabis Act that produces premium cannabis products using proprietary aeroponic cultivation practices.

Pursuant to yesterday's closing, Trichome Financial provided JWC with an initial advance of $2.85 million under the Amended Loan (the "First Advance"), with the balance of $1.15 million to be advanced conditionally upon the achievement by JWC of certain milestones (the "Second Advance"). The proceeds will be used by JWC to fund its remaining capital expenditures and for working capital purposes as JWC begins to materially scale revenues out of its flagship facility at 540 Manitou Drive in Kitchener, Ontario ("JWC2").

The Amended Loan is secured by a perfected first lien on all of JWC's current and future tangible and intangible assets (including a share pledge from all subsidiaries of JWC) and bears interest at a rate of 9.25% per annum. Upon closing of the First Advance, Trichome Financial received a total of 984,208 common shares (the "Bonus Shares") of JWC and 1,696,385 common share purchase warrants (the "Bonus Warrants"), with each warrant having a term of two years and a strike price of $0.42. Upon closing of the Second Advance, JWC will issue to Trichome Financial additional Bonus Shares equal to 14.87% of the Second Advance, divided by the closing price per common share of JWC on the last trading day preceding the date of the Second Advance. JWC will also issue additional Bonus Warrants equal to 25.63% of the Second Advance, divided by the closing price per common share of JWC on the last trading day preceding the date of the Second Advance, with each warrant having a term of two years from the date of the First Advance and a strike price equal to 105% of the closing price per common share of JWC on the last day preceding the date of the Second Advance. The initial $3.5 million of the Amended Loan will mature on February 19, 2021 and the remaining $4.0 million will mature on November 6, 2021.

In addition to the Amended Agreement, Trichome Financial and JWC entered into a Receivables Financing Facility (the "Facility"), whereby JWC may elect to finance certain qualified receivables. Total availability under the Facility is initially capped at $5.0 million and the financing of any receivables under the agreement will be subject to Trichome Financial's sole discretion.

"Having closely monitored JWC's performance and success at hitting milestones since our original loan closed in February, we are pleased to increase our commitment to JWC. Given its superior production capabilities, proven product quality and position as a premium cannabis brand, we feel JWC is well-positioned amongst its peers in the Canadian market," said Michael Ruscetta, Trichome Financial's Chief Executive Officer. "As capital remains very limited in the cannabis sector, our deal flow has increased significantly, resulting in a more robust pipeline of attractive lending opportunities for our shareholders."

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. Founded by industry leaders Origin House and Stoic Advisory, Trichome Financial'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 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. Trichome Financial's current assets are all based in Canada and it has no operations or assets in the United States.

For further information about Trichome Financial please visit us at www.trichomefinancial.com or @trichomefinance on Twitter and refer to the joint information circular of Trichome Financial and 22 Capital dated May 29, 2019 which is available on the Company's SEDAR profile at www.sedar.com.

READER ADVISORY

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

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: the advance of the Second Advance and receipt of bonus consideration in respect thereof; the construction of JWC2 and the future revenues of JWC; the factoring by JWC of receivables under the Facility; and the future market opportunity for Trichome Financial. 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 Financial assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.

SOURCE Trichome Financial Corp.

For further information: Michael Ruscetta, CEO, [email protected]; Marc Charbin, Investor Relations, Telephone: (416) 467-5229, Email: [email protected]