Origin House Subsidiary Trichome Financial Corp. to Begin Trading on TSX Venture Exchange Under Ticker “TFC”
- Common shares to begin trading on TSX Venture Exchange under trading symbol “TFC” tomorrow, October 10, 2019
- First-mover to address the lack of credit availability in the large, growing and increasingly complex cannabis market
- Uniquely positioned defensive business model and long runway for growth
TORONTO, ONTARIO (October 9, 2019) – CannaRoyalty Corp. d/b/a Origin House (CSE: OH) (OTCQX: ORHOF) (“Origin House” or the “Company”), a North American cannabis products and brands company, today announced that its subsidiary Trichome Financial Corp. (formerly 22 Capital Corp.) (the “Corporation” or “Trichome Financial”) (TSXV:TFC) announced that its common shares will begin trading on the TSX Venture Exchange (“TSXV”) tomorrow under the trading symbol “TFC”.
Since its inception, Trichome Financial has:
- Closed six credit transactions and signed term sheets for three other opportunities;
- Constructed a portfolio of secured loans which provide a weighted-average contractual effective cash interest yield of approximately 14.5% plus potentially meaningful upside through warrants; and
- Established a robust pipeline of near-term opportunities for capital deployment.
“Trichome Financial was established to address the lack of credit availability in the high-growth and rapidly evolving global cannabis sector. With the increasing demand for capital across the cannabis value chain and the limited supply of flexible capital, Trichome Financial identified an opportunity to address an unmet need that would provide shareholders with highly attractive returns on both an absolute and risk-adjusted basis,” said Michael Ruscetta, Chief Executive Officer. “We are providers of solution capital, helping clients to capitalize on opportunities and meet the challenges of this evolving industry. As cannabis is legalized in new markets around the world and existing players mature, we believe the market for Trichome Financial’s credit products will continue to grow. With the experience of our founders and management team, we are in an excellent position to capitalize on this opportunity.”
Message from Marc Lustig, Chairman and Co-Founder
Marc Lustig, Chairman of the Board and Co-Founder of Trichome Financial, commented, “The rapidly expanding cannabis industry has long needed additional sources of capital, particularly on the credit side. In today’s environment, Trichome Financial’s business model is more relevant than ever. Given its defensive positioning and deep pipeline of opportunities, I expect Trichome Financial to become a valuable partner for many well-positioned cannabis companies in this growing industry, while generating returns for all shareholders.”
The Company has entered into an investor relations services agreement (the “Services Agreement”) with LodeRock Advisors Inc. (“LodeRock”) pursuant to which LodeRock will provide Trichome Financial with strategic investor relations and capital markets communications services. Pursuant to the terms of the Services Agreement, Trichome Financial will pay LodeRock a monthly retainer fee of $7,500 and will issue to LodeRock 25,000 restricted share units. The Services Agreement can be terminated on sixty (60) days written notice. Trichome Financial has no prior professional relationship with LodeRock and, as of the date of this release, one LodeRock principal owns 30,000 shares of Trichome Financial.
The Company has retained INFOR Financial Inc. (“INFOR Financial”) to provide market making services on the TSX Venture Exchange, in compliance with the policies and guidelines of the exchange.
INFOR Financial will trade the securities of Trichome Financial on the TSXV for the purpose of maintaining an orderly market and to provide liquidity of Trichome’s common shares. Trichome Financial will pay INFOR Financial $10,000 per month for a minimum term of four (4) months renewable every month thereafter. Each party will have an option to cancel upon thirty days’ prior notice. There are no performance factors contained in the agreement and INFOR Financial will not receive shares or options as compensation. INFOR Financial and Trichome Financial are unrelated and unaffiliated entities, but INFOR Financial and/or its clients may have an interest, directly or indirectly, in the securities of Trichome Financial.
About Trichome Financial Corp.
Trichome Financial 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) 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. Trichome Financial’s common shares will commence trading on the TSX Venture Exchange under the symbol “TFC”.
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 Corporation’s SEDAR profile at www.sedar.com.
About Origin House
Origin House is a growing cannabis brands and distribution company operating across key markets in the U.S. and Canada, with a strategic focus on becoming a preeminent global house of cannabis brands. Origin House’s brand development platform is operated out of six licensed facilities located across California, and provides distribution, manufacturing, cultivation and marketing services for its brand partners. Origin House is actively developing infrastructure to support the proliferation of its brands internationally, initially through its acquisition of Canadian retailer 180 Smoke. Origin House’s shares trade on the CSE under the symbol “OH” and on the OTCQX under the symbol “ORHOF”. Origin House is the registered business name of CannaRoyalty Corp. For more information, visit www.originhouse.com.
For further inquiries, please contact:
Contact Information – Trichome Financial
Michael Ruscetta, CEO
Marc Charbin, LodeRock Advisors Inc.
Telephone: (416) 467-5229
Contact Information – Origin House
Jonathan Ross, LodeRock Advisors Inc.
Telephone: (416) 283-0178
Senior Communications Manager, Origin House
Telephone: (647) 232-9287