James E. Wagner Cultivation (JWC) (TSXV:JWCA,OTCQX:JWCAF) announced on Wednesday (November 6) it, along with some of its subsidiaries, entered into a loan agreement with Trichome Financial for a loan in the amount of C$4 million to be advanced to JWC in two tranches.
As quoted in the press release:
The first tranche of the Loan in the amount of CDN$2,850,000 (the “First Tranche”) will be advanced to JWC upon the satisfaction of customary closing conditions and is expected imminently. The second tranche of the Loan, in the amount of CDN$1,150,000 (the “Second Tranche”) will be advanced to JWC upon satisfaction of certain further conditions precedent set out in the Loan Agreement.
A set-up fee in the amount of $60,000 and a 5% original issue discount was applied to the First Tranche. A 5% original issue discount will also be applied to the Second Tranche at the time it is advanced. Interest on the Loan shall be paid monthly in cash at a rate of 9.25% per annum on the then outstanding amount of the Loan, with all outstanding interest payable upon maturity.