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TerrAscend Announces Agreement for US$75 Million Credit Facility
– Credit facility to support initiation of TerrAscend’s US acquisition strategy –
TORONTO, Dec. 14, 2018 /PRNewswire/ – TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) (“TerrAscend”) is pleased to announce that it has agreed to terms on a US$75 million credit facility with certain funds managed by JW Asset Management LLC, where Jason Wild, Chairman of the Board of TerrAscend, is the President and Chief Investment Officer. These funds are also the largest shareholders of TerrAscend. The credit facility is intended to give TerrAscend access to non-dilutive capital for acquisitions in the United States, as well as for general corporate and working capital purposes. The facility, once signed, is intended to mature one year from its date of effectiveness and will bear interest at 8.75% per annum, with a 1% origination fee.
The credit facility will provide non-dilutive capital to accelerate our growth and help support our previously announced strategy to pursue opportunities in the US, including acquisitions of operators in states that have legalized cannabinoids for therapeutic or adult-use. Upon signing, the credit facility will support the near term initiation of the company’s US acquisition strategy. TerrAscend’s pipeline of potential acquisitions includes operators with significant market share, strong brand recognition and substantial global potential.
Michael Nashat, TerrAscend’s Chief Executive Officer
We look forward to sharing more details regarding progress on our US strategy in the coming weeks. We greatly appreciate the commitment and support that our Chairman, Jason Wild, has shown our company. His commitment, financial support and network of opportunities continue to differentiate and position the company to succeed as a leader in the legal global cannabinoid market.
“The team is executing at a high-level and we believe that with these additional resources, TerrAscend can accelerate its growth trajectory. We are excited about the company’s near and long-term prospects in the United States and Canada.” said Matthew Johnson, President of TerrAscend Corp. and TerrAscend USA.
The commitment and associated term sheet are non-binding and TerrAscend’s ability to draw down on the credit facility is subject to the negotiation and execution of definitive credit agreements and the satisfaction of other customary closing conditions. There is no assurance that definitive documents with respect to the credit facility and associated guarantees will be completed, that any amount will be drawn under the credit facility or that TerrAscend will be able to source attractive investment opportunities or otherwise successfully deploy any amounts drawn for the purposes intended. Amounts drawn under the facility will be guaranteed by TerrAscend Corp. and one of its wholly-owned Canadian subsidiaries and will be secured by certain of such subsidiary’s inventory and trade receivables.
About TerrAscend Corp.
TerrAscend is a biopharmaceutical and wellness company that is committed to quality products, brands and services for the global cannabinoid market. TerrAscend provides support to patients and consumers through its wholly-owned subsidiaries, TerrAscend Canada Inc., a licensed producer of cannabis pursuant to the Cannabis Regulations under the Cannabis Act (Canada) that provides medical cannabis to patients through its online medical marketplace Solace Health, and Solace Health Network Inc., a clinical support program and education platform led by healthcare professionals. TerrAscend participates in the legal adult-use market in Canada through direct and indirect supply agreements in several provinces and intends to expand into the US market in states where cannabinoids have been legalized for therapeutic or adult-use. TerrAscend also launched Ascendant Labs, a company committed to the continuous improvement of cannabinoid expressing plants, which is a strategic joint venture with leading researchers Cistron Corp.
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