Trichome Financial Corp. and Blissco Cannabis Corp. announce the completion of a $4.5 Million Non-Dilutive Trade Finance Facility and Refinancing of Mortgage
TORONTO, May 15, 2019 (GLOBE NEWSWIRE) — Trichome Financial Corp. (“Trichome” or the “Company”) is pleased to announce that it has entered into a $4.5 million Trade Finance Facility (the “Facility”) and a $1.5 million mortgage loan (the “Mortgage”) with Blissco Holdings Ltd. (“Blissco”), a wholly-owned subsidiary of Blissco Cannabis Corp. (CSE:BLIS) (HSTRF) (FRA:GQ4B), a Licensed Producer under the Cannabis Act and a Canadian wellness cannabis brand based in British Columbia (“BC” or the “Province”). The Facility will be available to be used to finance accounts receivables from provincial distributors and other customers as well as to facilitate the purchase of inventory from wholesale cannabis suppliers to Blissco. Trichome’s Mortgage will be used to refinance the existing mortgage on Blissco’s property in Langley, BC and provide Blissco with additional working capital to continue to accelerate its growth.
Founded in 2013, Blissco is a producer of premium dried cannabis and cannabis oil and a licensed distributor of dried cannabis products currently available in BC Cannabis Stores and select retailers across the Province. Blissco is also approved to sell dried cannabis products in Alberta, Saskatchewan and New Brunswick with plans to deliver product to these markets in the coming months.
“We are pleased to partner with Blissco on this innovative and value-added financing structure,” said Michael Ruscetta, CEO of Trichome. “The Facility will provide capital to enable Blissco to accelerate its growth through further expansion of its sales channels in new markets and the delivery of higher-margin derivative products once appropriate licensing has been obtained.”
“We are delighted to have established this non-dilutive debt financing with Trichome Financial Corp. which we intend to use to purchase and process more dried cannabis and hemp inventory to fulfill the strong demand we are experiencing from our provincial distribution partners,” said Blissco CEO Damian Kettlewell.
The Facility provides Blissco with up to $4.5 million, to be drawn at its option, against qualifying receivables and inventory and matures in 12 months with an option to extend for an additional 12 months. The Mortgage is for a term of 12 months with an option to extend for an additional 12 months and is secured by a first-ranking perfected security interest in the assets of Blissco and is guaranteed by Blissco Cannabis Corp.
About Trichome Financial Corp.
Trichome is a specialty finance company focused on providing flexible and creative capital 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 (CSE:OH), Stoic Advisory, and Sprott Inc. (SII.TO), Trichome’s experienced management team has a unique edge to capitalize on proprietary deal flow and insight while developing a first mover advantage as a global cannabis focused specialty finance company. Trichome provides customized financing solutions across the industry value chain to support growth, capital expenditures, M&A, working capital and other needs. Transactions are typically structured to earn attractive rates of contractual cash flows, retain optionality on value creation and ensure return of capital. Leveraging the combined resources and knowledge of its founders and management, it is able to offer significant value-added financial, product, market and operational support to its partner companies. Trichome’s current assets are all based in Canada and it has no operations or assets in the United States. For more information, please visit us at www.trichomefinancial.com or @trichomefinance on Twitter.
About Blissco Cannabis Corp.
Blissco Cannabis Corp. (CSE:BLIS) (HSTRF) (FRA:GQ4B) is a Canadian wellness cannabis brand based in British Columbia and a multi-licensed processor, cultivator, and distributor of premium cannabis. Blissco owns and operates an 18,000 square foot, state-of-the-art extraction, processing and cultivation facility located in Metro Vancouver, British Columbia. Blissco is supplying premium cannabis and Reserve whole flower and dried flower pre-rolls to the Canadian market with supply agreements in British Columbia, Alberta, Saskatchewan, and New Brunswick. In support of Blissco’s global distribution strategy, the company has initiated its EU GMP certification process and has completed its first inspection by German authorities.
Cautionary Note Regarding Forward-Looking Statements
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: future financing of accounts receivable and purchase of inventory from wholesale cannabis suppliers; future delivery by Blissco of dried cannabis products in Alberta, Saskatchewan and New Brunswick, and Blissco’s and Trichome’s growth plans. 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 assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.
Source: Yahoo Finance