TerrAscend Corp. cannabis company announced that it has completed the second and final draw of $26 million as part of its $140 million senior secured term loan.
The loan, managed by FocusGrowth Asset Management, LP, was initially announced in August 2024. The new funds were used to pay down higher-interest debt in Michigan, helping the company strengthen its financial position.
Earlier this year, Jason Wild, executive chairman of TerrAscend said that by closing this financing, the company has “no other material debt maturing until late 2027”
Key Financial Details
The loan, which carries a 12.75% interest rate and matures in August 2028, had no prepayment penalties. TerrAscend initially received $114 million from the same loan in August, bringing the total to $140 million. The loan is backed by TerrAscend's assets in Pennsylvania, California, Michigan and certain entities in Maryland.
What This Means For TerrAscend
The funds will assist in the reduction of high-interest debt, especially in Michigan, where TerrAscend continues to expand its presence. It carries an interest rate of 12.75%, up until August 2028, contains no prepayment penalties, and is guaranteed by the Company and TerrAscend USA, Inc.
No warrants were issued as part of the Loan.
TSNDF Price Action
TerrAscend’s shares traded 3.82% lower at $1.26 per share at the time of writing on Tuesday evening.
