TerrAscend Corp (CSE: TER) announced this morning that it intends to raise US$20 million via a private placement to continue its capital projects in New Jersey, as well as to provide cash for a milestone payment due in January. The raise has received lead orders of US$15 million in relation to the financing, some of which comes from insiders of the issuer.
Under the terms of the financing, TerrAscend is looking to raise US$20 million via the issuance of shares at a price of C$2.45 per unit. Each unit is to contain a common share and a full warrant, with the warrant being valid for a period of 24 months with an exercise price of C$3.25. A total of 10.775 million units are expected to be issued in conjunction with the financing.
Proceeds raised will go towards construction of certain New Jersey assets, including a cultivation and processing facility. The funds will also be used to make a milestone cash payment due in January 2020 in relation to the acquisition of Ilera Healthcare. Whatever remains following these transactions will be put towards working capital and general corporate purposes.
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Chairman Jason Wild, and Executive Chairman Jason Ackerman, along with Entourage Effect Capital, will be co-leading the financing round. The three parties have collectively committed to approximately US$15 million under the current financing.
TerrAscend last traded at $2.50 on the Canadian Securities Exchange.
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.
