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Cannabis business TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) reported On Friday, he secured $ 120 million in financing through a senior secured term loan with a syndicate of lenders.
The closed loan is guaranteed by Ilera Healthcare, a Pennsylvania-based subsidiary of the Mississauga, Ontario-based company.
TerrAscend purchased It will be last year for a total consideration of $ 125 to $ 225 million.
The loan would carry an annual interest rate of 12.875%, with a maturity of 4 years.
The company has an option to raise an additional $ 30 million. In addition, TerrAscend confirmed that the warrants were not issued as part of the offer.
The proceeds would be used to cover Ilera’s remaining earn-out payments in 2021.
“Pennsylvania is a very attractive limited license state, and we are in a leadership position with Ilera. I am very proud of the Ilera team and the way they executed and delivered, ”said Jason Ackerman, Executive Chairman and CEO of the company. “This financing demonstrates the Company’s ability to access capital markets, on favorable terms for our industry, based on solid fundamentals.
In the meantime, according to latest earnings report, net sales were C $ 51 million for the third quarter, up 90% year-on-year.
The company debuted in the US market in February 2019 by acquiring the Californian retailer Apothecarium. Today, he continues to expand his footprint, most recently cutting the ribbon on his fifth store in the Golden State.
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