In what has to be a record for endless financing announcements by a small Canadian licensed producer, James E. Wagner Cultivation (TSXV: JWCA) announced this morning that it had secured an additional $1.2 million in the form of a convertible security funding arrangement from that of Lind Global Macro Fund, which follows an announced $10.0 million investment by the firm at the end of December.
Under the terms of the arrangement, Lind will loan to James Wagner a total of $1.2 million in cash, which is expected to close within 10 days. The funds will see prepaid interest of $240,000, as well as commitment fee of $60,000 be paid out immediately, leaving the firm effectively with $900,000. Additionally, the loan has 50% warrant coverage, via 4,616,123 common share purchase warrants issued with an exercise price of $0.13 per share and a maturity of two years.
The debt will convert at a price of $0.13 per common share, with James E Wagner having the option to buyback the debt at any time. In the event of a buyback, Lind will have the option of converting up to 25% of the debt into equity of the issuer.
The funds are secured by a security interest in all current and after acquired property of the corporation and its subsidiaries. The debt however is subordinate to that of Trichome Financial Corp.
Additionally, James E Wagner announced separately this morning that Howard Steinberg has been appointed as an independent director of the firm as per a February 19, 2020 loan agreement for C$1.15 million between JWCA and Trichome Financial Corp.
James E. Wagner Cultivation last traded at $0.15 on the TSX Venture.
Information for this analysis was found via Sedar, and James Wagner Cultivation. The author has no securities related to this organization. James Wagner Cultivation was previously a client of CanaCom Group, the parent company of The Deep Dive. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.