James E. Wagner Cultivation Corp.
Trichome Financial Corp., a specialty finance company focused on providing flexible and creative capital solutions to the global legal cannabis market, is the lender. It will release the first tranche of $2.85 million imminently and then a further $1.15 million will be handed to JWC when further conditions are met.
It is a two-year loan paid monthly in cash at a rate of 9.25% per annum. JWC will use the cash injection to finish the build-out of facility, to finance the launch of new products, and for general working capital requirements.
JWC is a family-run company based in Kitchener, Ontario. It aims to become the most efficient producer of clean, consistent, aeroponically-grown cannabis in the world.
The facility it is building out should be able to produce around 35,000 kg of cannabis per year. It hopes to complete this build-out by the end of 2020.
It was founded in 2007 and it has previously received strategic investment from Canopy Rivers Corp., the $1 billion investment arm of Canopy Growth Corp., the largest cannabis company in the world.
JWC has developed proprietary technology called GrowthSTORM, which it claims offers high yield, consistency, balanced availability of growth requirements, precision and standardization of nutrient application and elimination of potential contaminants. The firm believes this makes it superior to greenhouse, soil, and hydroponics cultivation.
Revenue reached a record $749,000 in Q3 2019, a 32% sequential increase from the $566,000 it brought in during Q2. Net and comprehensive loss for the first nine months of fiscal 2019 were $6.16 million.
Cash and equivalents at June 30, 2019 totalled $3.8 million, compared to $2.3 million at March 31, 2019 and $18.0 million at June 30, 2018.
The firm’s share price peaked at $1.28 in April and it has steadily decreased since then. It opened at $0.40 today.
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