The company has announced that it has extended the date of its $75 million credit facility that was due December 18, 2019
TerrAscend Corp the first and only global cannabis company licensed for sales in Canada, the US, and the EU, today announced that it has extended the maturity date of its US$75 million credit facility due December 18, 2019 with funds managed by JW Asset Management LLC for up to three months and executed a term sheet with funds managed by JW Asset Management LLC to convert any amounts outstanding under the credit facility into a two-year term loan with an expected maturity of March, 2022.
Jason Wild, Chairman of the Board of TerrAscend, is the President and Chief Investment Officer at JW Asset Management.
In conjunction with the term sheet to convert the credit facility into a term loan, the credit facility maturity has been extended to March 15, 2020 or until such time as the parties have completed the required documentation to commence the conversion.
The credit facility will now carry a interest rate of 12.5% and the term loan, once finalized, is expected to provide for 12.5% interest, paid semiannually, a 1.5% origination fee on borrowed amounts and certain protective covenants. It is expected that funds advised by JW Asset Management, as well as third parties, will participate in the term loan. Definitive terms agreed by the parties for the term loan will be announced upon signing.
"The extension of the credit facility and commitment of funds for two years by JW Asset Management LLC, allows TerrAscend a non-dilutive source of financing during a time when we expect regulatory, banking and capital markets improvement" said Jason Ackerman, Executive Chairman of TerrAscend.
"We appreciate Jason Wild's ongoing support and are fully focused on growing our California, Pennsylvania, New Jersey, Canada and hemp CBD market opportunities. I am optimistic about TerrAscend's ability to continue to grow organically and profitably."
"When JW Asset Management provided the original credit facility last year, TerrAscend had just initiated its U.S. growth strategy with third quarter revenue of $1.8mm. "
"This past quarter, the company's revenue run rate exceeded $100mm. We are pleased with the pace of acquisitions, organic growth in the US operations, and the buildout of the super license in NJ. JW Asset Management fully supports Jason Ackerman and the management team and is committed to adding value as both a lender and shareholder," said Jason Wild.
Disclaimer: Past performance is not an indicator of future performance.
& Keep Up to Date
Get the latest pot stock recommendations, cannabis news
and industry updates straight to your inbox!