- Pelorus Equity Group has closed its US$45.5M debt-financing agreement with TerrAscend Corp. (TER), and its subsidiaries, TerrAscend NJ and HMS Hagerstown
- Proceeds from the loan will support TerrAscend’s ongoing growth initiatives.
- Under the terms of the agreement, Pelorus issued a floating rate loan currently bearing interest of 12.77 per cent
- TerrAscend is a leading North American cannabis operator with vertically-integrated operations
- TerrAscend Corp. opened trading at C$2.05 per share
Pelorus Equity Group has closed its US$45.5M debt-financing agreement with TerrAscend Corp. (TER) and its subsidiaries.
TerrAscend is a leading North American cannabis operator with operations in Pennsylvania, New Jersey, Maryland, Michigan and California, as well as licensed production in Canada.
Proceeds from the loan, which closed on Oct. 11, 2022, will support TerrAscend’s ongoing growth initiatives.
“With this agreement, we are excited to help fuel TerrAscend’s growth and long-term business goals,” noted Dan Leimel, CEO of Pelorus Equity Group and manager of the Pelorus Fund.
“As the demand for capital continues to increase in tandem with the growth of the cannabis industry, we plan to deliver even more innovative, flexible lending solutions and stabilized loans like this one to meet the needs of a wide range of clients, including MSOs, SSOs and ancillary businesses,” he added.
“We are pleased to announce this non-dilutive financing at attractive terms given the current market environment,” said Jason Wild, Executive Chairman of TerrAscend.
“The Pelorus team has been a pleasure to work with, delivering exactly what they promised. We look forward to a long successful partnership as we continue to grow,” he added.
Under the terms of the agreement, Pelorus issued a floating rate loan currently bearing interest of 12.77 per cent based on the prevailing Secured Overnight Financing Rate (SOFR), with a 2.5 per cent SOFR floor.
The duration of the loan is 60 months, with a minimum earned-interest period of 36 months.
The loan is secured by the borrower’s real estate assets in New Jersey and Maryland and is subject to customary covenants and requirements.
To date, Pelorus has completed 72 commercial real estate loan transactions and deployed $500+ million to cannabis businesses and real estate owners, comprising 4 million square feet in 10 states across the U.S.
TerrAscend is a leading North American cannabis operator with vertically-integrated operations in Pennsylvania, New Jersey, Michigan and California, licensed cultivation and processing operations in Maryland and licensed production in Canada.
TerrAscend Corp. opened trading at C$2.05 per share.
