TORONTO, ON–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.
TerrAscend provides quality products, brands, and services to the global cannabinoid market. As the first North American Operator (NAO), with scale operations in both Canada and the US, the Company participates in the medical and legal adult use market across Canada and in several US states where cannabis has been legalized for therapeutic or adult use. TerrAscend is the first and only cannabis company with sales in the US, Canada, and Europe. TerrAscend operates a number of synergistic businesses, including The Apothecarium, an award-winning cannabis dispensary with several retail locations in California and Nevada; Arise Bioscience Inc., a manufacturer and distributor of hemp-derived products; Ilera Healthcare LLC, Pennsylvania’s premier medical marijuana cultivator, processor and dispenser; Ascendant Laboratories Inc., a biotechnology and licensing company committed to the continuous improvement of cannabinoid expressing plants; Solace RX Inc., a proposed Drug Preparation Premises (DPP) focused on the development of novel formulations and delivery forms; and Valhalla Confections, a manufacturer of premium cannabis-infused edibles. Additionally, TerrAscend has been chosen by the State of New Jersey to be one of six permit applicants for a vertically integrated medical cannabis operation.