Trichome Financial Corp (TSXV: TFC) has completed its previously announced amalgamation with 22 Capital Corp, setting the firm up to become publicly traded on the TSX Venture later this week. The firm was spun out of Origin House (CSE: OH) as part of its amalgamation with 22 Capital.
Initially established a year and a half ago to provide secured financing within the cannabis sector, Trichome already has a number of successful investments under its belt in terms of return for shareholders, providing an annualized return of 14.5% in terms of average effective cash interest yield – a figure which doesn’t include warrant and equity positions associated with investments that have a greater potential return down the road.
Recent financings conducted by Trichome Financial have generated significant return for the firm, including an internal rate of return (IRR) of 82% on 180 Smoke, and 23% on Blissco. Other recent transaction include:
- Non-binding $4 million term sheet with James Wagner Corp (TSXV: JWC)
- $2.35 Million term loan with Good Buds Company, a Salt Spring Island-based outdoor grower
- $5.5 Million senior secured term loan with MYM Nutraceuticals (CSE: MYM)
- $3.5 Million senior secured loan with james Wagner Corp (TSXV: JWC)
The firm also released it’s approved Board of Directors with today’s announcement, identifying the following would be joining the board:
- Marc Lustig
- Timothy Diamond
- Marissa Lauder
- Jonathan Page
- Michael Ruscetta
- Christian Sinclair
- Howard Steinberg
As part of the go public transaction, Trichome Financial completed a non-brokered private placement at a price of $2.10 per share. Total funds raised amounted to $16.5 million, resulting in the issuer have a fully diluted share count of 27,415,343 issued and outstanding shares upon going public.
Trichome Financial is anticipated to begin trading on October 10, 2019.
Information for this analysis was found via Sedar, The CSE and Trichome Financial. The author has no securities or affiliations related to this organization. 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.