Toronto-based cannabis sector financier Trichome Financial Corp. has received court approval to complete its acquisition of troubled Ontario cannabis grower James E. Wagner Cultivation Corp. (JWC), the company announced Wednesday.
JWC entered creditor protection in April.
Trichome, which had a debtor-in-possession loan deal with JWC, announced its successful stalking-horse bid for the company in May.
The total value of the deal is estimated at 13 million Canadian dollars ($9.6 million), according to a press release.
Trichome’s new assets will include JWC’s 114,000 square-foot indoor cultivation facility, said to have an annual capacity of about 7,000 kilograms of cannabis per year.
Trichome plans to use those assets “as a base upon which to build a larger platform focused on the production and distribution of high quality cannabis products, disciplined capital allocation and free cash flow generation,” said Trichome CEO Michael Ruscetta in the press release.
The transaction should be complete by June 30.