Goldman Alumnus Jumps Into Cannabis Debt Financing

Trichome Financial Corp., a company led by Goldman Sachs Group Inc. alumnus Michael Ruscetta, is readying a C$100 million ($75 million) war chest to dive into the business of debt financing for cannabis companies, Bloomberg News reported. Toronto-based Trichome is planning to raise between C$25 million ($18.8 million) and C$35 million of new equity, adding to C$15 million already raised by partners, managers and some investors, Ruscetta said in an interview at Bloomberg’s offices in Toronto. In the second quarter, the firm will also start raising C$50 million for a fund that will co-invest with Trichome in cannabis debt transactions. Debt financing has been relatively rare in the volatile pot industry, where companies have typically relied on equity to raise funds as traditional bankers shied away from the space. Some of the bigger cannabis companies are beginning to offer convertible debt. Canopy Growth Corp., Aurora Cannabis Inc. and Tilray Inc. -- the industry’s largest companies -- have issued C$1.3 billion of such securities, but they have yet to issue a straight bond. Read more

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