TerrAscend Completes $140 Million Debt Financing
TerrAscend Corp. (TSX: TSND, OTCQX: TSNDF) has secured a $140 million senior secured term loan from FocusGrowth Asset Management and other syndicate members. The non-dilutive financing features a 12.75% interest rate and matures in August 2028 with no prepayment penalties. The loan includes an initial draw of $114 million for operations in Pennsylvania, Maryland, and California, with a second draw of $26 million expected in September 2024 for Michigan operations.
The proceeds will be used to retire existing debt and potentially fund M&A activities for geographic expansion. This financing strengthens TerrAscend's balance sheet and provides financial flexibility for growth, with no other material debt maturing until late 2027. The transaction also involved a related party participation from Jason Wild, an insider of the company, who invested approximately $7.5 million in the loan syndicate.
TerrAscend Corp. (TSX: TSND, OTCQX: TSNDF) ha ottenuto un prestito senior garantito da 140 milioni di dollari da FocusGrowth Asset Management e altri membri del sindacato. Questo finanziamento non diluitivo presenta un tasso di interesse del 12,75% e scade nell'agosto 2028 senza penali per rimborso anticipato. Il prestito include un prelievo iniziale di 114 milioni di dollari per le operazioni in Pennsylvania, Maryland e California, con un secondo prelievo di 26 milioni di dollari previsto per settembre 2024 per le operazioni in Michigan.
Le entrate saranno utilizzate per estinguere debiti esistenti e potenzialmente finanziare attività di M&A per l'espansione geografica. Questo finanziamento rafforza il bilancio di TerrAscend e offre flessibilità finanziaria per la crescita, senza altre scadenze di debiti materiali fino a fine 2027. La transazione ha anche comportato una partecipazione di un soggetto correlato, Jason Wild, un insider dell'azienda, che ha investito circa 7,5 milioni di dollari nel sindacato di prestiti.
TerrAscend Corp. (TSX: TSND, OTCQX: TSNDF) ha asegurado un préstamo a plazo senior garantizado de 140 millones de dólares de FocusGrowth Asset Management y otros miembros del sindicato. Este financiamiento no dilutivo cuenta con un tasa de interés del 12.75% y vence en agosto de 2028 sin penalizaciones por pago anticipado. El préstamo incluye un desembolso inicial de 114 millones de dólares para operaciones en Pennsylvania, Maryland y California, con un segundo desembolso de 26 millones de dólares previsto para septiembre de 2024 para operaciones en Michigan.
Los ingresos se utilizarán para pagar deudas existentes y potencialmente financiar actividades de M&A para la expansión geográfica. Este financiamiento fortalece el balance de TerrAscend y proporciona flexibilidad financiera para el crecimiento, sin que haya otras deudas significativas que venzan hasta finales de 2027. La transacción también involucró la participación de un partido relacionado, Jason Wild, un informante de la empresa, que invirtió aproximadamente 7.5 millones de dólares en el sindicato de préstamos.
TerrAscend Corp. (TSX: TSND, OTCQX: TSNDF)는 FocusGrowth Asset Management 및 기타 조합원으로부터 1억 4천만 달러의 담보 선순위 대출을 확보했습니다. 이 비희석 자금 조달은 12.75%의 이자율을 제공하며 2028년 8월에 만료되며 선지급 위약금이 없습니다. 이 대출에는 펜실베이니아, 메릴랜드 및 캘리포니아의 운영을 위한 1억 1천4백만 달러의 초기 인출이 포함되어 있으며, 미시간 운영을 위한 2천6백만 달러의 두 번째 인출이 2024년 9월에 예정되어 있습니다.
조달된 자금은 기존 부채를 상환하고 지리적 확장을 위한 M&A 활동을 자금 조달하는 데 사용됩니다. 이 자금 조달은 TerrAscend의 재무 상태를 강화하고 성장에 대한 재정적 유연성을 제공합니다. 2027년 말까지 만료되는 다른 주요 부채는 없습니다. 이 거래는 회사의 내부자인 Jason Wild가 관련 당사자로 참여하여 대출 조합에 약 750만 달러를 투자했습니다.
TerrAscend Corp. (TSX: TSND, OTCQX: TSNDF) a obtenu un prêt senior garanti de 140 millions de dollars de FocusGrowth Asset Management et d'autres membres du syndicat. Ce financement non dilutif présente un taux d'intérêt de 12,75% et arrive à échéance en août 2028 sans pénalités de remboursement anticipé. Le prêt inclut un tirage initial de 114 millions de dollars pour des opérations en Pennsylvanie, Maryland et Californie, avec un deuxième tirage de 26 millions de dollars prévu pour septembre 2024 pour des opérations au Michigan.
Les produits seront utilisés pour rembourser des dettes existantes et potentiellement financer des activités de fusions et acquisitions pour une expansion géographique. Ce financement renforce le bilan de TerrAscend et offre une flexibilité financière pour la croissance, sans qu'aucune autre dette importante n'échoie avant fin 2027. La transaction a également impliqué la participation d'un partie liée, Jason Wild, un membre de l'entreprise, qui a investi environ 7,5 millions de dollars dans le syndicat de prêts.
TerrAscend Corp. (TSX: TSND, OTCQX: TSNDF) hat einen sicheren vorrangigen Darlehen über 140 Millionen Dollar von FocusGrowth Asset Management und anderen Syndikatmitgliedern gesichert. Die nicht verwässernde Finanzierung weist einen Zinssatz von 12,75% auf und fällt im August 2028 fällig, ohne Vorfälligkeitsentschädigung. Das Darlehen beinhaltet eine anfängliche Auszahlung von 114 Millionen Dollar für die Operationen in Pennsylvania, Maryland und Kalifornien, mit einer zweiten Auszahlung von 26 Millionen Dollar, die für September 2024 für die Aktivitäten in Michigan erwartet wird.
Die Erlöse werden verwendet, um bestehende Schulden zu tilgen und potenziell M&A-Aktivitäten zur geografischen Expansion zu finanzieren. Diese Finanzierung stärkt die Bilanz von TerrAscend und bietet finanzielle Flexibilität für Wachstum, ohne dass bis Ende 2027 wesentliche Schulden fällig werden. Die Transaktion beinhaltete auch eine Beteiligung eines nahestehenden Parteimitglieds, Jason Wild, einem Insider des Unternehmens, der ungefähr 7,5 Millionen Dollar in den Darlehenssindikat investierte.
- Secured $140 million in non-dilutive financing, strengthening the balance sheet
- No material debt maturing until late 2027, improving financial flexibility
- Proceeds to be used for retiring existing debt and potential M&A expansion
- No warrants issued as part of the loan, avoiding shareholder dilution
- Lender's confidence in TerrAscend's vision and strategy
- High interest rate of 12.75% on the new loan
- Related party transaction involving insider participation in the loan syndicate
Non-dilutive financing bears a coupon of
No material debt maturing until late 2027
TORONTO, Aug. 02, 2024 (GLOBE NEWSWIRE) -- TerrAscend Corp. (“TerrAscend” or the “Company”) (TSX: TSND, OTCQX: TSNDF), a leading North American cannabis company, today announced that the Company, together with certain entities that are consolidated by the Company (the “Consolidated Entities”), have closed on a senior secured term loan (the “Loan”) for gross proceeds of US
“Completing this non-dilutive financing strengthens our balance sheet and provides us the financial flexibility to continue to execute on our growth strategy. With this financing closed, we have no other material debt maturing until late 2027.” said Jason Wild, Executive Chairman of TerrAscend. “This transaction also reflects our lender’s confidence in our vision and strategy. The FocusGrowth team has been a pleasure to work with and we look forward to a long and successful partnership together.”
“We have closely watched TerrAscend’s progress and are excited to partner with them to support their continued growth,” said Peter Bio, Partner of FocusGrowth. “TerrAscend has established itself as a market leader in multiple states with ample greenfield opportunities for growth in both new and existing markets. We have enjoyed working with the team on this transaction and are already working with management to evaluate additional opportunities.”
The Transaction constitutes a “related party transaction” within the meaning of Multilateral Instrument 61–101 Protection of Minority Security Holders in Special Transactions (“MI 61–101”) because Jason Wild, an insider of the Company, directly or indirectly invested approximately US
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 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. Forward-looking statements include, but are not limited to, statements herein with respect to the Company’s expectations regarding the financial and other benefits of the Loan to the Company’s operations and growth strategy. 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 laws.
For more information regarding TerrAscend:
Keith Stauffer
Chief Financial Officer
ir@terrascend.com
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