: Cannabis company TerrAscend secures $45.5 mln loan with 12.8% interest rate
TerrAscend Corp. TRSSFCA:TER said Wednesday its New Jersey and Maryland subsidiaries have closed on a $45.5 million, non-brokered senior secured term loan from funds managed by Pelorus Equity Group. The loan currently bears interest of 12.77% per year and is based on a variable rate tied to the one month secured overnight financing rate (SOFR), with interest-only payments for the first 36 months and a maturity date five years from closing. There are no warrants being issued as part of the transaction. The non-dilutive financing will be used to fund TerrAscend’s growth initiatives. “We remain excited about new opportunities in expanding markets like Maryland and New Jersey, and we are also closely following emerging markets like Alabama and Mississippi and will continue to look for strong sponsors, great projects and attractive markets,” said Pelorus Equity Group managing partner Travis Goad. TerrAscend shares traded flat on Wednesday. The stock is down 75.6% in 2022, compared to a 61% drop by the AdvisorShares Pure U.S. Cannabis ETF MSOS.
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