James E. Wagner Commences Sales and Investor Solicitation Process

James E. Wagner Cultivation Corporation (NEX: JWCA.H; OTCQX: JWCAF), announces that, in connection with its consensual restructuring under the Companies’ Creditors Arrangement Act, it has received approval from the Ontario Superior Court of Justice to commence its previously announced Sales and Investor Solicitation Process, to be carried out by Stoic Advisory Inc. under the supervision of the Special Committee of the Board of Directors of the Corporation and KSV Kofman Inc., as monitor in the CCAA proceedings. The Court also approved the appointment of Howard Capital LLC (the managing member and sole owner of which is Howard Steinberg) as the Chief Restructuring Officer of JWC and granted an extension of the stay of proceedings granted in connection with JWC’s CCAA proceedings until June 26, 2020. In connection with the appointment of Howard Capital LLC as the Chief Restructuring Officer of JWC, Mr. Steinberg resigned as a director and officer of the Corporation.

James E. Wagner Cultivation Corporation’s wholly owned subsidiary is a Licensed Producer under the Cannabis Regulations, formerly the Access to Cannabis for Medical Purposes Regulations (“ACMPR”). JWC is a premium cannabis brand, focusing on producing clean, consistent cannabis using an advanced and proprietary aeroponic platform named GrowthSTORM™. JWC began as a collective of patients and growers under the Marihuana Medical Access Regulations (the precursor to ACMPR). Since its inception, JWC has remained focused on providing the best possible patient experience. JWC is a family-founded company with deep roots planted in the local community. JWC’s operations are based in Kitchener, Ontario.

In connection with the order approving the SISP, JWC’s previously announced asset purchase agreement with Trichome Financial Corp. has been approved by the Court as JWC’s “stalking horse bid” and Trichome Financial has been approved as JWC’s “stalking horse” bidder in the SISP.  

Pursuant to the SISP, interested parties will be given an opportunity to submit an offer for all of JWC’s assets for a purchase price estimated to be equal to or greater than $11.95 million. JWC will also consider (i) separate offers to acquire some but not all of JWC’s assets, if a combination of one or more such bids in the aggregate would result in proceeds at least equal to the amounts described above, and (ii) a bid structured as a CCAA plan if it is otherwise a qualified bid pursuant to the SISP.