[PRESS RELEASE] – TORONTO, July 9, 2025 – TerrAscend Corp. – a North American cannabis leader – announced the closing of a senior secured syndicated loan for $79M. $68M of the $79M was allocated to repay existing indebtedness with other lenders. The remaining $29M will be used for future growth. As part of the transaction, an additional uncommitted term loan facility in an aggregate principal amount of up to $35 million will be available for future mergers and acquisitions (M&A).
FocusGrowth Asset Management LP is the lender and a leader in providing capital to cannabis companies. The interest rate on this loan is 12.75 %. This loan has no prepayment penalty and is guaranteed. As part of this loan, no warrants have been issued.
“This loan extends the vast majority of our debt until late 2028 and provides additional capital to execute on our growth initiatives, including M&A,” TerrAscend Executive Chairman Jason Wild said. This transaction shows FocusGrowth’s belief in the vision and strategy of TerrAscend. The team was a joy to work with and we are looking forward to building a successful and long-lasting partnership.
Peter Bio said, “Our Team is Excited to Further Our Partnership with TerrAscend in Support of Their Growth.” TerrAscend is a leader in the market in several states, with many greenfield growth opportunities in new and old markets. “We have thoroughly enjoyed working with this team and we are currently working with management on evaluating additional opportunities.”
The transaction constitutes a “related party transaction” within the meaning of Multilateral Instrument 61–101 Protecting Minority Securities Holders during Special Transactions (MI 61–101) because Jason Wild, an insider of the company, directly or indirectly invested approximately US$1.6 million of the loan as a member of the loan syndicate in connection with the transaction (the “insider participation”). The company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61–101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61–101 in respect of the insider participation as the fair market value (as determined in accordance with MI 61-101) of the insider participation in the transaction is below 25% of the company’s market capitalization (as determined in accordance with MI 61-101).