Based on strong consumer demand, TerrAscend's private placement is upsized to $30 million.
TerrAscend Corp. (CSE:TER), the first and only global cannabis company licensed for sales in Canada, the US, and the EU, today announced that its previously announced private placement generated strong investor interest and oversubscribed demand. Correspondingly, the Company has increased the offering size to approximately US$30 million which has been fully allocated and is anticipated to close in two tranches.
Today the Company closed the first tranche of the Private Placement, issuing 12,968,325 Units at an issue price of CAD$2.45 per Unit resulting in proceeds to the Company of CAD$31,772,412. Each Unit consists of one common share in the capital of the Company (the "Common Shares") and one Common Share purchase warrant (a "Warrant"). Each Warrant will be exercisable to acquire one Common Share (a "Warrant Share") prior to January 14, 2022 at an exercise price of CAD$3.25 per Warrant Share.
The Company has received subscriptions for the entire US$30 million, including significant participation from Chairman Jason Wild, Executive Chairman Jason Ackerman, and all of the Company's additional directors. Subject to the satisfaction of customary closing conditions, including the approval of the Canadian Securities Exchange, the final tranche of the Private Placement is expected to close on January 7.
The Company intends to use the proceeds from the Private Placement to accelerate the completion of the New Jersey cultivation and processing facilities, to satisfy the previously announced January 2020 contingent purchase price payment related to the acquisition of Ilera Healthcare, and for working capital and general corporate purposes.
For further details concerning the Private Placement, please refer to the Company's news release dated December 10, 2019.
The securities to be issued pursuant to the private placement have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.
The Canadian Securities Exchange ("CSE") has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
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