Trichome Financial Announces Closing of $5.5 Million Senior Secured Term Loan to MYM Nutraceuticals

TORONTO, Aug. 1, 2019 /CNW/ - Trichome Financial Corp. ("Trichome Financial" or the "Company") is pleased to announce that it has closed its previously announced  $5.5 million Senior Secured Term Loan (the "Secured Loan") with MYM Nutraceuticals Inc. ("MYM")(CSE:MYM)(OTCBB:MYMMF).  The Secured Loan has been advanced in an initial tranche of $3.0 million at close, with an additional tranche of $2.5 million available no earlier than three months after close, subject to certain conditions.  The proceeds of the Secured Loan will be used by MYM to fund several growth initiatives, including capital expenditures and working capital for its high-CBD hemp opportunities in Saskatchewan, British Columbia, and Nevada, as well as its THC and CBD opportunities in Colombia and Laval, Quebec.

MYM's joint venture, Bio Hemp Naturals Growing & Farming Ltd. ("BioHemp"), has secured binding and non-binding commitments to sell approximately 50% of its CBD-rich hemp biomass from the current growing season in Saskatchewan and British Columbia for over $30 million in gross revenue.  MYM is entitled to receive 50% of the net profits from BioHemp.

"Since the execution of our non-binding term sheet in June, MYM has made significant progress executing its 2019 strategic plan and overall objective of becoming a leader in CBD-rich hemp," said Michael Ruscetta, CEO of Trichome Financial. "Even in capital constrained market conditions, Trichome Financial is able to provide timely, flexible and uniquely structured credit solutions to the legal cannabis and hemp industries.  This transaction provides Trichome Financial with a highly attractive contractual rate of return along with a meaningful opportunity to participate in MYM's value creation strategy."

Secured Loan Details

The Secured Loan is secured by a first lien on MYM's current and future tangible and intangible assets as well as a pledge of equity in all material subsidiaries.  The Secured Loan has a maturity of 12 months from closing, and Trichome Financial has an option to extend the term by an additional 6 months.  Interest will be paid monthly in cash at a rate of 12.0% per annum.  As additional consideration, Trichome Financial will receive up to 5,000,000 warrants to purchase common shares of MYM for a period of 3 years at an exercise price of $0.30.  4,000,000 warrants have been released to Trichome Financial upon closing, with the remaining 1,000,000 warrants to be released upon funding of the second tranche.

Howard Steinberg, CEO and Director of MYM, is also a director of Trichome Financial and as such has recused himself from Trichome Financial's board on this matter.

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 has received shareholder approval of its acquisition by 22 Capital Corp., a TSX Venture Exchange capital pool company, and has received conditional approval of the TSX Venture Exchange and is in the process of satisfying the conditions for final approval.  For more information, please visit us at www.trichomefinancial.com or @trichomefinance on Twitter.

Cautionary Note Regarding Forward-Looking Statements

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things: advancing the second tranche of the Secured Loan; approval of the Secured Loan by the TSX Venture Exchange; final approval of the TSX Venture Exchange for Trichome Financial's acquisition by 22 Capital Corp.; MYM's growth plans; and Trichome Financial's growth plans. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; and the delay or failure to receive board, shareholder or regulatory approvals. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, Trichome Financial assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.

SOURCE Trichome Financial Corp.

Michael Ruscetta, CEO, [email protected]; Marc Charbin, Investor Relations, [phone], [email protected]