- Record December revenue, doubling November and October revenue combined
- First purchase order received from British Columbia
- Old School Red Hash, the newest hash SKU, launched with two purchase orders
- Continued improvement in yields and quality, with THC levels increasing to between 22.5% and 26.5%
TORONTO, ON / ACCESSWIRE / December 14, 2020 / Trichome Financial Corp. (the “Company” or “Trichome Financial”) (CSE:TFC) is pleased to provide an update regarding key developments at Trichome JWC Acquisition Corp. dba JWC (“TJAC” or “JWC”) that demonstrate increasing momentum in product sales and operational improvements.
In only its first three months of commercial activity, JWC’s “customer focused, consumer obsessed” approach has resulted in substantial growth in consumer adoption as reflected in increased sell-through rates and purchase orders for new and existing products. We have been particularly pleased with the initial market reaction to our Old School Black Hash, and our recently launched Old School Red Hash has received its first purchase order.
Michael Ruscetta, Chief Executive Officer of Trichome Financial
With continuous improvements in quality and yields, we expect our momentum to continue into 2021 as we introduce a number of new strains to the market, launch over 20 new SKUs, and introduce a rebuilt JWC brand. We are confident that our guidance for 2021 is very attainable and continue to pursue a strategy that places JWC as the base of a platform for further industry consolidation.
Recent JWC Milestones
- JWC received its first purchase order from the British Columbia Liquor Distribution Branch, which is expected to be a significant contributor to revenue in 2021;
- Received a Notice To Purchase from the Ontario Cannabis Store for JWC’s Old School Black Hash SKUs and has delivered its first order of Dark Helmet whole flower pre-rolls;
- Received purchase orders for Old School Red Hash, the Company’s newest hash SKU, from Cannabis NB (New Brunswick) and from our wholesale partner in Saskatchewan, in addition to replenishment orders on other flower and pre-roll SKUs;
- The last seven harvested lots have tested for THC between 22.5% and 26.5%, a significant increase in average potency, and an equally significant improvement in sensory qualities;
- JWC remains on track to meet 2021 net revenue guidance of between $22 million and $24 million, with December 2020 net revenue expected to approximately double the net revenue from October and November 2020 combined; and
- Expenses remain within budget and supportive of meeting adjusted EBITDA guidance of between $7 million to $8 million in 2021.
JWC’s management are forecasting continued production improvements and increasing yields through the balance of Q4 2020 and into Q1 2020, achieving anticipated full run-rate in early Q2 2021. Management forecasts revenues to also reach full run-rate by Q2 2021. As production continues to ramp through the balance of 2020 and into the first half of 2021, Trichome Financial is providing the following financial guidance for JWC.
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. Trichome Financial’s experienced founders and management team have a unique edge to capitalize on proprietary deal flow and industry insight in order to drive the best risk-adjusted returns on shareholder’s capital. With the recent acquisition of the assets of James E. Wagner Cultivation Corp., Trichome Financial is focused on acquiring related assets to compliment JWC and leverage the knowledge, expertise and insights of its employees, management and founders.
For further information about Trichome Financial please visit us at www.trichomefinancial.com or @trichomefinance on Twitter and refer to the joint information circular of Trichome Financial and 22 Capital dated May 29, 2019 which is available on the Company’s SEDAR profile at www.sedar.com.
Original press release