TerrAscend Completes $20.5M Private Placement

TerrAscend has been actively preparing for Maryland's launch of adult-use sales.

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) closed on a second round of private placements this week worth $20.5 million, the company said Wednesday.

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.

Adam Jackson

Adam Jackson writes about the cannabis industry for the Green Market Report. He previously covered the Missouri Statehouse for the Columbia Missourian and has written for the Missouri Independent. He most recently covered retail, restaurants and other consumer companies for Bloomberg Business News. You can find him on Twitter at @adam_sjackson and email him at adam.jackson@crain.com.

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