TerrAscend To Fund Operations With $30M Private Placement Deal

Cannabis company TerrAscend Corp. TERTRSSF announced Tuesday it secured some $30 million in financing.

TerrAscend plans to use funds, attained from a non-brokered private placement, to cover the costs of its U.S. expansion strategy, capital expenditures, and working capital.

TerrAscend has the option "to upsize" the amount of the offering to about $40 million, according to the release.

The Mississauga, Canada-based company has received initial investor commitments totaling $28 million, including a $20 million lead order from JW Asset Management LLC.
The deal is expected to close later this month.

TerrAscend also offered units issued at the price of $2,000 per unit.

"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 TerrAscend's CEO and Executive Chairman Jason Ackerman. "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."

Ackerman was named permanent CEO in April.

Following the moving of its financial operations to New York City, TerrAscend disclosed it appointed Keith Stauffer as its CFO.

Shortly after, the company decided to expand its deal with Precision Extraction Solutions and utilize the Detroit-based company's equipment in its production.

In March, TerrAscend secured more than $58.59 million, after its Canada-oriented subsidiary signed a loan financing arrangement with Canopy Growth Corp. CGC WEED.