TerrAscend Secures Additional $26 Million in Loan Draw to Pay Down High-Interest Debt

0.8 min readPublished On: October 3rd, 2024By HCN News Team

LOS ANGELES- TerrAscend Corp. a North American cannabis company, has completed a second draw of $26 million as part of its senior secured term loan, bringing the total gross proceeds to $140 million. The loan, managed by FocusGrowth Asset Management, LP, and other syndicate members, was originally announced in August 2024. This recent capital will be used to pay off higher-interest debt in Michigan.

The loan, which carries a 12.75% interest rate and matures in August 2028, had no prepayment penalties. It is secured by TerrAscend’s assets in Pennsylvania, California, Michigan, and certain entities in Maryland. The loan’s total gross proceeds included an initial draw of $114 million in August 2024.

Jason Wild, TerrAscend’s executive chairman, previously noted that following this financing, the company has no other major debt maturing until late 2027. This move is part of the company’s strategy to strengthen its financial position by reducing high-cost liabilities.

Ventum Capital Markets acted as the exclusive financial advisor on the transaction.

About the Author: HCN News Team

The News Team at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.