Trulieve Cannabis (CSE: TRUL) last night revealed they are looking to raise big dollars as a means of paying for the now-closed acquisition of Harvest Health (CSE: HARV). The firm indicated it is looking to raise gross proceeds of US$350 million to fund the acquisition.
The financing is to take the form of senior secured notes, which bear interest at a rate of 8% per annum, paid semi-annually. The notes are to be for a period of five years, expiring in 2026, and rank pari pasu with the senior secured notes that mature in 2024.
The notes are said to be redeemable at any point after two years from the date of issuance. The financing is said to be conducted on a best efforts basis.
Proceeds from the financing are to be used to pay off certain debts owed by Harvest Health following the firms acquisition of the company, as well as for capital expenditures and general corporate purposes.
The financing is expected to close October 6, 2021.
Harvest Health currently has approximately $278.6 million outstanding notes payable, of which $134.4 million is currently classified as being current.
Trulieve Cannabis last traded at $34.46 on the CSE.
Information for this briefing was found via Sedar and Trulieve Cannabis. 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.
