[PRESS RELEASE] – TORONTO, July 9, 2025 – TerrAscend Corp., a leading North American cannabis company, announced that the company, together with certain entities that are consolidated by the company, has closed on an upsize to its senior secured syndicated term loan of $79 million, $68 million of which were used to retire existing indebtedness across other lenders, with the remainder designated for future growth initiatives. 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).
The loan, led by FocusGrowth Asset Management LP, a leading capital provider to the cannabis sector, carries an interest rate of 12.75%, and matures in August 2028. It contains no prepayment penalties and is guaranteed by the company. No warrants were issued as part of the loan.
“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 reflects FocusGrowth’s confidence in the company’s vision and strategy. Their team has been a pleasure to work with, and we look forward to a long and successful partnership together.”
“Our team is excited to further our partnership with the TerrAscend team to support their growth,” said Peter Bio, partner of FocusGrowth. “TerrAscend has established itself as a market leader in multiple states with ample greenfield opportunities for growth in both new and existing markets. We have enjoyed working with the team on this transaction and are already working with management to evaluate additional opportunities.”
The transaction constitutes a “related party transaction” within the meaning of Multilateral Instrument 61–101 Protection of Minority Security Holders in 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).
