TerrAscend Corp (CSE: TER) is the latest US cannabis operator to announce a significant capital raise following the Democrat’s sweep south of the border. The company this morning announced an over subscribed private placement to raise gross proceeds of C$224 million.
The financing will see the sale of a total of 18.1 million common shares of its equity at a price of $12.35 per common share. No warrant is to be issued in connection with the offering. Commitments reportedly come largely from four large US institutional investors, with roughly 80% of the total financing reportedly being sourced from the four groups.
Proceeds from the financing are to be used for accelerating existing expansion plans and pursuing M&A transactions in additional limited license states. The offering follows the recently announced $120 million debt transaction conducted by the company conducted just last month to fund an earn-out payment for its acquisition of Ilera.
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The current financing is anticipated to close by January 26, 2021.
TerrAscend Corp last traded at $13.53 on the CSE.
Information for this briefing was found via Sedar and TerrAscend Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
