TerrAscend Closes on Remaining US$26 Million Draw of US$140 Million Debt Financing
TerrAscend Corp. (TSX: TSND, OTCQX: TSNDF), a leading North American cannabis company, has announced the completion of the second draw of US$26 million in gross proceeds from its senior secured term loan. This brings the total gross proceeds to US$140 million from funds managed by FocusGrowth Asset Management, LP and other loan syndicate members.
The loan carries an interest rate of 12.75%, matures in August 2028, and contains no prepayment penalties. It is guaranteed by TerrAscend and TerrAscend USA, Inc., and secured by consolidated entities in Pennsylvania, California, Michigan, and certain entities in Maryland. The proceeds from the second draw were used to pay down the company's higher interest Michigan debt.
The initial draw of US$114 million was completed in August 2024. Notably, no warrants were issued as part of the loan. Ventum Capital Markets acted as the exclusive financial advisor for this transaction.
TerrAscend Corp. (TSX: TSND, OTCQX: TSNDF), una delle principali aziende nordamericane nel settore della cannabis, ha annunciato il completamento del secondo prelievo di 26 milioni di dollari USA in proventi lordi dal suo prestito senior garantito a tempo. Ciò porta il totale dei proventi lordi a 140 milioni di dollari USA da fondi gestiti da FocusGrowth Asset Management, LP e altri membri del sindacato di prestiti.
Il prestito ha un tasso d'interesse del 12,75%, scade a agosto 2028 e non prevede penali per rimborso anticipato. È garantito da TerrAscend e TerrAscend USA, Inc., ed è garantito da entità consolidate in Pennsylvania, California, Michigan e da alcune entità nel Maryland. I proventi del secondo prelievo sono stati utilizzati per ridurre il debito della società in Michigan a interesse più elevato.
Il prelievo iniziale di 114 milioni di dollari USA è stato completato ad agosto 2024. È importante notare che non sono stati emessi warrant come parte del prestito. Ventum Capital Markets ha agito come consulente finanziario esclusivo per questa transazione.
TerrAscend Corp. (TSX: TSND, OTCQX: TSNDF), una de las principales empresas de cannabis en América del Norte, ha anunciado la finalización del segundo desembolso de 26 millones de dólares EE. UU. en ingresos brutos de su préstamo a plazo garantizado senior. Esto eleva el total de ingresos brutos a 140 millones de dólares EE. UU. proveniente de fondos gestionados por FocusGrowth Asset Management, LP y otros miembros del sindicato de préstamos.
El préstamo tiene una tasa de interés del 12.75%, vence en agosto de 2028 y no contiene penalizaciones por pago anticipado. Está garantizado por TerrAscend y TerrAscend USA, Inc., y está asegurado por entidades consolidadas en Pennsylvania, California, Michigan y ciertas entidades en Maryland. Los ingresos del segundo desembolso se utilizaron para reducir la deuda de la empresa en Michigan, que tiene un interés más alto.
El primer desembolso de 114 millones de dólares EE. UU. se completó en agosto de 2024. Es importante destacar que no se emitieron warrants como parte del préstamo. Ventum Capital Markets actuó como asesor financiero exclusivo para esta transacción.
TerrAscend Corp. (TSX: TSND, OTCQX: TSNDF), 북미의 주요 대마초 회사 중 하나가 2600만 달러의 두 번째 자금 조달을 완료했다고 발표했습니다. 이로써 FocusGrowth Asset Management, LP가 관리하는 자금 및 기타 대출 신디케이트 회원들로부터 총 1억 4000만 달러의 자금 조달이 이루어졌습니다.
이 대출은 12.75%의 이율을 가지고 있으며, 2028년 8월에 만기가 되며, 조기 상환 수수료는 없습니다. TerrAscend 및 TerrAscend USA, Inc.가 보증하며, 펜실베니아, 캘리포니아, 미시간 및 메릴랜드의 일부 법인에 의해 담보가 설정되어 있습니다. 두 번째 자금 조달의 수익은 회사의 고금리 미시간 부채를 상환하는 데 사용되었습니다.
첫 번째 자금 조달은 1억 1400만 달러로 2024년 8월에 완료되었습니다. 흥미롭게도, 이 대출의 일부로서 제무 보증서는 발행되지 않았습니다. Ventum Capital Markets는 이 거래의 독점 재정 고문으로 활동하였습니다.
TerrAscend Corp. (TSX: TSND, OTCQX: TSNDF), une entreprise canadienne de cannabis de premier plan, a annoncé l'achèvement du deuxième tirage de 26 millions de dollars US en produits bruts provenant de son prêt senior garanti à terme. Cela porte le total des produits bruts à 140 millions de dollars US provenant des fonds gérés par FocusGrowth Asset Management, LP et autres membres du syndicat de prêts.
Le prêt a un taux d'intérêt de 12,75%, arrive à échéance en août 2028, et ne comporte aucune pénalité de remboursement anticipé. Il est garanti par TerrAscend et TerrAscend USA, Inc., et est sécurisé par des entités consolidées en Pennsylvanie, Californie, Michigan et certaines entités au Maryland. Les produits du deuxième tirage ont été utilisés pour rembourser la dette de l'entreprise à intérêt plus élevé dans le Michigan.
Le premier tirage de 114 millions de dollars US a été complété en août 2024. Notamment, aucun bon de souscription n'a été émis dans le cadre de ce prêt. Ventum Capital Markets a agi en tant que conseiller financier exclusif pour cette transaction.
TerrAscend Corp. (TSX: TSND, OTCQX: TSNDF), ein führendes nordamerikanisches Cannabisunternehmen, hat den Abschluss des zweiten Abrufs von 26 Millionen US-Dollar an Bruttoerlösen aus seinem vorrangigen besicherten Darlehen bekannt gegeben. Dies erhöht die Gesamtsumme der Bruttoerlöse auf 140 Millionen US-Dollar aus von FocusGrowth Asset Management, LP verwalteten Fonds und anderen Mitglieder der Darlehens-Syndikate.
Das Darlehen hat einen Zinssatz von 12,75%, läuft bis August 2028 und enthält keine Vorfälligkeitsentschädigungen. Es wird von TerrAscend und TerrAscend USA, Inc. garantiert und ist durch konsolidierte Unternehmen in Pennsylvania, Kalifornien, Michigan sowie bestimmte Unternehmen in Maryland gesichert. Die Erlöse aus dem zweiten Abruf wurden verwendet, um die hohen Zinsen der Michigan-Schulden des Unternehmens zu tilgen.
Der erste Abruf von 114 Millionen US-Dollar wurde im August 2024 abgeschlossen. Bemerkenswerterweise wurden im Rahmen des Darlehens keine Warrants ausgegeben. Ventum Capital Markets war als exklusiver Finanzberater für diese Transaktion tätig.
- Secured additional US$26 million in financing, bringing total to US$140 million
- Proceeds used to pay down higher interest Michigan debt
- Loan has no prepayment penalties
- No warrants issued, preventing potential shareholder dilution
- Increased debt obligation with 12.75% interest rate
- Additional assets secured against the loan
Proceeds from second draw used to pay down higher interest Michigan debt
TORONTO, Oct. 01, 2024 (GLOBE NEWSWIRE) -- TerrAscend Corp. (“TerrAscend” or the “Company”) (TSX: TSND, OTCQX: TSNDF), a leading North American cannabis company, today announced that certain entities consolidated by the Company (the “Consolidated Entities”) in Michigan have completed the second draw of US
The Loan carries an interest rate of
Ventum Capital Markets acted as the exclusive financial advisor to the Company for the Transaction.
About TerrAscend
TerrAscend is a leading TSX-listed cannabis company with interests across the North American cannabis sector, including vertically integrated operations in Pennsylvania, New Jersey, Maryland, Michigan and California through TerrAscend Growth Corp. and retail operations in Canada through TerrAscend Canada Inc. (“TerrAscend”). TerrAscend operates The Apothecarium, Gage and other dispensary retail locations as well as scaled cultivation, processing, and manufacturing facilities in its core markets. TerrAscend’s cultivation and manufacturing practices yield consistent, high-quality cannabis, providing industry-leading product selection to both the medical and legal adult-use markets. The Company owns or licenses several synergistic businesses and brands including Gage Cannabis, The Apothecarium, Cookies, Lemonnade, Ilera Healthcare, Kind Tree, Legend, State Flower, Wana, and Valhalla Confections. For more information visit www.terrascend.com .
Caution Regarding Cannabis Operations in the United States
Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the US Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute, or possess cannabis in the United States. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable US federal money laundering legislation.
While the approach to enforcement of such laws by the federal government in the United States has trended toward non-enforcement against individuals and businesses that comply with medical or adult-use cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve TerrAscend of liability under U.S. federal law, nor will it provide a defense to any federal proceeding which may be brought against TerrAscend. The enforcement of federal laws in the United States is a significant risk to the business of TerrAscend and any proceedings brought against TerrAscend thereunder may adversely affect TerrAscend's operations and financial performance.
Forward Looking Information
This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information contained in this press release may be identified by the use of words such as, “may”, “would”, “could”, “will”, “likely”, “expect”, “anticipate”, “believe, “intend”, “plan”, “forecast”, “project”, “estimate”, “outlook” and other similar expressions, and include statements with respect to the Company’s expected use of proceeds from the second draw of the Transaction. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment, and the availability of licenses, approvals and permits.
Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to, current and future market conditions; risks related to federal, state, provincial, territorial, local and foreign government laws, rules and regulations, including federal and state laws in the United States relating to cannabis operations in the United States and the risk factors set out in the Company’s most recently filed MD&A, filed with the Canadian securities regulators and available under the Company’s profile on SEDAR+ at www.sedarplus.ca and in the section titled “Risk Factors” in the Company’s Annual Report for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”) on March 14, 2024, as may be updated by the Company’s Quarterly Reports on Form 10-Q and other filings it files with the SEC from time to time.
The statements in this press release are made as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking information, whether, as a result of new information, future events, or results or otherwise, other than as required by applicable securities law.
For more information regarding TerrAscend:
Keith Stauffer
Chief Financial Officer
ir@terrascend.com
FAQ
What is the total amount of the debt financing secured by TerrAscend (TSNDF) in October 2024?
What is the interest rate and maturity date of TerrAscend's (TSNDF) new loan?
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Were any warrants issued as part of TerrAscend's (TSNDF) US$140 million loan?
