TerrAscend Corp. TRSSF, a leading North American cannabis operator, announced that it has closed on a US$25 million commercial loan with Stearns Bank, noting that the proceeds from the loan will be used to pay down the Company’s higher-interest rate debt, thereby lowering overall interest expense.
The Loan carries an interest rate of prime plus 2.25%, which is currently 10.5%, and matures in December 2024.
“Our team has worked tirelessly over the last twelve months to transform our balance sheet, lower expenses, improve margins and drive positive cashflow, all while leading the industry in revenue growth,” said Jason Wild, executive chairman of TerrAscend. “We are building a sustainable business for the long term, and we are thrilled to see Stearns Bank share our excitement for the future growth of TerrAscend. I am convinced that our relationship with them will grow significantly in the future.”
Heather Plumski, Stearns Bank EVP, chief financial & strategy officer said the bank is happy to oblige.
“Stearns Bank is pleased to offer this financing to TerrAscend under our Cannabis Banking Program. TerrAscend’s concentrated operations and focus in the Northeast with well-structured transition programs to expand from medical to adult use, is disciplined and impressive. We look forward to working with Jason and his team,” said Plumski.
See also: TerrAscend Upsizes Previously Announced Offering To $20M, Closes $16M Initial Tranche
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