TerrAscend Secures $25 Million Commercial Loan to Reduce Debt and Lower Interest Expenses

LOS ANGELES– TerrAscend Corp., a cannabis operator in North America, has successfully closed a commercial loan of $25 million with Stearns Bank. The loan proceeds will primarily be used to pay down existing debt with higher interest rates, effectively reducing the overall interest expense for the company. The loan carries an interest rate of prime plus 2.25%, which currently stands at 10.5%, and has a maturity date in December 2024.

Executive Chairman of TerrAscend, Jason Wild, expressed his satisfaction with the company’s efforts in transforming its balance sheet, lowering expenses, improving margins, and achieving positive cash flow over the past year. He highlighted the significance of building a sustainable business for long-term success and expressed enthusiasm for the growth potential of TerrAscend. Wild also emphasized his belief that the relationship with Stearns Bank will expand significantly in the future.

Heather Plumski, EVP, Chief Financial & Strategy Officer at Stearns Bank, expressed the bank’s pleasure in offering financing to TerrAscend under their Cannabis Banking Program. Plumski acknowledged TerrAscend’s focused operations and concentration in the Northeast, along with their well-structured transition programs from medical to adult-use cannabis markets. Stearns Bank looks forward to collaborating with Jason Wild and the TerrAscend team.

The securing of this $25 million commercial loan represents an important milestone for TerrAscend as it enables the company to strategically manage its debt and optimize its financial position. This development further demonstrates the confidence and support of financial institutions in the cannabis industry, and TerrAscend’s commitment to sustainable growth and long-term success.