The second tranche involved selling 2,292,434 units of the company at $1.50 each, generating around $3.4 million. Combined with Tuesday’s first tranche, the equity offering raised around $9.5 million.
Additionally, the company sold 100 unsecured convertible debentures at $1,000 each for an aggregate gross proceeds worth $100,000, raising the total debenture offering to $10 million across both installments.
TerrAscend said it also sold Class A shares of the company to a third-party investor for $1 million as part of a reorganization investment.
Net proceeds from the private placements will help qualify the company for a proposed Toronto Stock Exchange listing, fund acquisitions of Maryland dispensaries, and boost working capital and general corporate purposes.
Company insiders, including Jason Wild, participated in the equity offering, acquiring a combined total of 800,002 units and 2,000 debentures for a gross total of $3,238,601.
The Canadian operator has been on a spree lately. The company on Tuesday secured a $25 million loan from Stearns Bank and snapped up its third Maryland dispensary for $6.75 million. That loan, which packs an interest rate of 10.5%, matures in December 2024. The dispensary acquisition came as Maryland prepares to launch recreational marijuana sales on Saturday.
This week’s financing and M&A moves follows TerrAscend’s announced acquisition of Derby I LLC, dba Peninsula Alternative Health, which closed today, for $22.1 million and its recent approval to uplist to the TSX.