In a quick strategic move to raise working funds, one of the leading North American cannabis operators, TerrAscend, has announced a recent non-brokered private placement for gross proceeds of nearly $30 million. Under this agreement, there is an option to upsize the amount of the offering to add more gross proceeds of between $35 million and $40 million, which was left entirely at the company’s discretion. The initial offer already had commitments from investors like JW Asset Management LLC for $20 million, which should be finalized in the next couple of days, as always subject to customary closing conditions.
According to TerrAscend, these funds will be used to finance the company’s expansion strategy across the US, as well as provide cash flow for capital expenditures, working capital and general corporate purposes. “This planned funding positions TerrAscend with a strong balance sheet that enables us to continue to build depth in the high-quality markets where we operate,” said Jason Ackerman, Chairman and CEO of TerrAscend. “We are now fully funded to complete all of our CAPEX projects, which will fuel the growth of both the cultivation and dispensary sides of our business. We’re fortunate to have developed a strong partnership with JW Asset Management and appreciate their support, and the support of the other investors, as we capitalize on the opportunities ahead.”
Each unit negotiated in this offering consist of one convertible preferred share in the capital of the Company and one convertible preferred share purchase warrant – the price per unit was set at $2,000. These warrants will entitle the shareholder to purchase one Convertible Preferred Share in the capital of the Company at $3,000 per share. This offering will remain active from the issuing date and it will extend for 36 months. This Convertible Preferred Shares actually convert 1,000 common shares for foreign investors, and the proportionate equivalent voting shares for US investors.