TerrAscend Secures US$120 Million Term Loan To Fund Ilera Earn-Out Payment

TerrAscend Corp (CSE: TER) this morning announced that it has closed on a US$120 million senior secured term loan with a syndicate of lenders. The term loan was required following what is said to be strong performance exhibited by Ilera Healthcare Division, requiring the company to payout the entire earnout provision of the transaction, of which US$135 million remains.

Ilera was originally acquired by TerrAscend back in September 2019 for proceeds of up to US$225 million, a figure that is based on the full earn-out incentive structure being met. The company operates in Pennsylvania, housing a 144,000 square foot cultivation and manufacturing facility along with three dispensaries.

The term loan, arranged by Seaport Global Securities, will see the assets of Ilera secured against the debts. The loan bears interest at a rate of 12.875% per annum, with a four year maturity on the debt while being callable at any time. With an initial value of US$120 million, the company is able to expand the loan by up to US$30 million subject to certain conditions being met.

The funds from the raise will be used in entirety to fund the earn-out payments required to be made to Ilera, with the remaining portion owed to be paid via cash on hand.

TerrAscend Corp last traded at $12.33 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.

Video Articles

Why Copper Juniors Could Explode After This Trade War Move | Christian Easterday – Hot Chili

Silver Is Rarer Than Gold, And the Market’s Waking Up | Shawn Khunkhun – Dolly Varden Silver

Gold Will Hit North of $4,000: Who’s Actually Producing? | Shane Williams – West Red Lake

Recommended

ESGold Sees ANT Survey Reveal Vertically Continuous System To 1,200 Metres Depth

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Related News

Will The Safe Banking Act Result In Progress For Cannabis? – The Daily Dive feat Jason Wild

Today on the Daily Dive, we get the opportunity to sit down with Jason Wild,...

Thursday, April 29, 2021, 01:30:00 PM

TerrAscend Moves To Be First TSX-Listed US Cannabis Operator

TerrAscend Corp (CSE: TER) is moving to be one of the first cannabis issuers on...

Tuesday, March 14, 2023, 09:03:48 AM

TerrAscend Acquires Three Pennsylvania Dispensaries For US$63 Million

TerrAscend Corp (CSE: TER) this morning continued its strategy of expansion by acquisition. The company...

Tuesday, April 20, 2021, 07:18:59 AM

TerrAscend Hits US$58.7 Million In Revenue, US$23.1 Million Net Loss In Q2 2021

TerrAscend Corp. (CSE: TER) reported today its Q2 2021 financial results, which saw the company...

Thursday, August 19, 2021, 02:06:00 PM

TerrAscend Reports Preliminary Q2 Revenues Of $72.1 Million

TerrAscend (TSX: TSND) this morning elected to pre-announce preliminary financial results for the second quarter,...

Tuesday, August 1, 2023, 09:24:40 AM