TerrAscend Upsizes Previously Announced Offering To $20M, Closes $16M Initial Tranche

TerrAscend Corp. TRSSF TER announced on June 23 that it closed the first tranche of its previously announced concurrent private placements for total gross proceeds of approximately $16 million, upsizing the offering to $20 million. A second tranche closing is scheduled for June 28, 2023.

The closing of the initial tranche of the private placements consists of an aggregate of 4,071,577 units of the company at a price of $1.50 per unit for aggregate gross proceeds of approximately $6.1 million and 9,905 senior unsecured convertible debentures of the company at a price of $1,000 per debenture for aggregate gross proceeds of $9.9 million. Proceeds will be used for TSX listing qualification, Maryland dispensary acquisitions, and general corporate purposes.

See also: TerrAscend To Acquire 8,500 Square Foot Cannabis Dispensary In Maryland For $22.1M

Equity Offering

The Equity Offering consists of units containing one common share and one-half of a warrant. Each warrant allows the holder to purchase a common share at $1.95 within 24 months after the Equity Offering closes.

Debenture Offering

The debentures will be due for repayment in 36 months unless repaid or converted earlier. They accrue 9.9% interest annually, payable on the debenture offering (the “maturity date”). Holders can choose to receive up to 4.95% of the interest in cash semi-annually. Debentures can be converted into Common Shares at any time before the maturity date at a conversion price of $2.01, with accrued interest included.

Company insiders took part in the private placement, purchasing 2,000 debentures and 25,732 Units. Additionally, 300,000 Warrants were issued under the same terms. A cash commission, ranging from 1% to 3.75% of the gross proceeds, will be paid based on the funding source.

Price action: On Monday, before the market closed, TRSSF shares were trading up 0.23% at $1.65 per share.

Read More: TerrAscend's $22M Purchase Of Peninsula Alternative Health Approved By Maryland's Cannabis Admin

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