Business and commercial: Company debt finances pot operations

A major Ontario financial corporation is shelling out big money to invest in the legal cannabis industry. Trichome Financial Corp. out of Toronto is leaping into the business and commercial sector of the cannabis world with $100 million in debt financing for a number of cannabis companies. Up until now, this sort of debt financing has been a rarity in the cannabis sector, but Trichome is already taking receivables as a guarantee from some of the country's leading cannabis companies.

The company wants to take it even further by expanding into the mergers and acquisitions arena when it comes to the cannabis industry. It is hoping on about 15 per cent internal return rates. Trichome's largest pot brands shareholder currently is Origin House. The company has plans of going public with stock offers in the spring. Although Trichome is only lending to Canadian companies currently, it has plans of lending stateside in those areas where cannabis is legal.

Trichome is targeting smaller grow operations in Canada since most of the major players like Aurora Cannabis Inc., and Canopy Growth Corp. are financially solid. They're supported by national lending institutions. Private lenders like Trichome are more apt to take a risk in the smaller operations.

A lawyer's help may prove to be invaluable in business and commercial dealings in Ontario. A lawyer will always have his or her client's back when it comes to the legalities of making decisions in the corporate world. Having wise advice from an experienced lawyer could save an individual from making unwise business decisions and could save a lot of potential financial distress. Such advice could also help a client to make some wise business portfolio choices as well.

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