Trichome Financial Corp. (the “Company” or “Trichome Financial”) announced that its wholly-owned subsidiary, Trichome JWC Acquisition Corp. (“TJAC”) d/b/a JWC (“JWC”), received licensure from Health Canada and closed the acquisition of substantially all of the assets (the “Assets”) of James E. Wagner Cultivation Corporation on August 28, 2020 (the “Acquisition”), free and clear of legacy liabilities. The Acquisition was made in connection with James E. Wagner Cultivation Corporation’s consensual restructuring proposal with Trichome Financial under the Companies’ Creditors Arrangement Act (the “CCAA”) that was previously authorized by the Ontario Superior Court of Justice (Commercial List) on June 2, 2020. The Assets were purchased for total consideration of $16 million by way of set-off of Trichome Financial’s pre-filing debt and assumption of its debtor-in-possession (“DIP”) financing, and will be used by TJAC to continue to produce premium cannabis offerings under the JWC brand. TJAC is fully licensed to operate the acquired Assets. Based in Kitchener, Ontario, the Assets include 114,000 square feet of licensed space in two facilities capable of producing approximately 7,000 kilograms per year of premium cannabis. TJAC, operating the JWC business, is one of a small percentage of licensed producers holding a complete set of Health Canada licenses, enabling it to produce and sell both dried flower products as well as extract products. The Assets are fully built out, require nominal capital expenditures for growth, and have operated without interruption during the CCAA proceedings. Finally, TJAC extended employment agreements to 107 people, the vast majority of whom were previously employed by James E. Wagner Cultivation Corporation. The Assets are estimated to be valued at approximately $19 million on a preliminary basis, subject to audit confirmation.