TORONTO: Trichome Financial Corp. has announced the launch of Trichome Special Opportunities (TSO), a private equity unit focused on providing strategic capital to companies operating across the cannabis value chain that are experiencing financial and/or operational difficulties.

Howard Steinberg, a director of the Company with over 25 years of restructuring, private equity and private credit experience, will join TSO as a co-Managing Partner, alongside Trichome Financial CEO Michael Ruscetta.

In addition, Trichome Financial has also launched Trichome Advisory Partners (TAP), a fee-driven advisory business focused on providing critical financial, strategic and operational support to cannabis companies, lenders and investors. Leveraging the expertise and network of Trichome Financial, TAP will focus on providing advice with respect to financial and operational restructurings, stakeholder engagement, asset recovery, and capital structure enhancement.

“The confluence of improving cannabis industry fundamentals along with capital flight from both the cannabis sector and the broad market has created a unique opportunity for a private equity strategy that has the ability to generate multiples of invested capital for our shareholders as we support the evolution and maturation of the cannabis sector,” commented Michael Ruscetta, CEO of Trichome Financial.

“TSO is designed to capitalize on the sunk capital costs and market learnings over the last several years, providing a highly attractive entry point and return profile for our shareholders and other investors.”

“Trichome Financial was established to provide needed capital and other solutions to the cannabis sector that were otherwise unavailable. Starting with specialty credit solutions, our platform is now a onestop-shop for financial solutions across the capital structure with the addition of TSO and TAP. We believe our shareholders will benefit from the addition of a higher returning asset class at the right time in the cycle, as well as revenue diversification from advisory fees and fees from third party capital management.” said Michael Ruscetta.

The Trichome Financial Platform: With the launch of these new business lines, the Trichome Financial platform will be comprised of three business segments servicing the cannabis sector:

Trichome Private Credit: As a leading provider of specialty credit solutions to the global cannabis sector, Trichome Financial will continue to deploy its own capital as well as capital from third party investors. Revenue from this segment will continue to be comprised of coupon interest, structuring fees, OIDs, and equity or royalty bonuses, in addition to management fees and carried interest from third party capital.

Trichome Special Opportunities: Leveraging Trichome Financial’s extensive underwriting experience and deep network in the cannabis sector, TSO will seek to provide capital to companies operating across the cannabis value chain that are experiencing financial and/or operational difficulties due to adverse market conditions. Such investments may include the acquisition of assets both inside and outside of a court supervised restructuring process, sponsoring recapitalization transactions, asset carveout transactions, and making control or significant influence investments in companies that require a strategic and long-term capital partner. TSO will seek to earn multiples of its own invested capital as well as fees and carried interest from capital raised from third parties.

It is expected that TSO will manage Trichome Financial’s previously announced “stalking horse” bid for James E. Wagner Cultivation Corp. in the event that it is the successful bidder, or an amount of cash to be determined by the Company’s board of directors if it is not. Trichome Financial has received very positive feedback from numerous institutional investors to invest alongside TSO, either in the form of a closed-end limited partnership or on a transaction specific basis.

Trichome Advisory Partners: TAP is a fee-driven advisory business with a mandate to provide independent financial, strategic and operational advice to companies, investors, and lenders active in the legal cannabis industry in Canada and the U.S. Bringing critical insights about the cannabis industry from its extensive due diligence database, capital structure expertise, and a broad network of relationships, TAP will focus on providing advice with respect to financial and operational restructurings, stakeholder engagement, asset recovery, and capital structure enhancement.

Each of the business units will leverage the resources of the existing team and infrastructure of Trichome Financial and all revenue streams from each business unit will flow entirely to Trichome Financial for the benefit of its shareholders.

(ACCESSWIRE)