TerrAscend Corp. (CSE: TER) (OTC: TRSSF) said Wednesday it plans to conclude non-brokered private placement offerings to raise $25 million by issuing units of both TerrAscend and TerrAscend Canada Inc.
Each unit of TerrAscend consists of one unsecured convertible debenture of TerrAscend and 25.2 common share purchase warrants of TerrAscend, while each unit of TerrAscend Canada consists of one unsecured convertible debenture of TerrAscend Canada and 25.2 common share purchase warrants of TerrAscend.
The first tranche of the TerrAscend Canada offering has been completed with a $10-million investment from Canopy Rivers (TSX: RIV) (OTC: CNPOF). Canopy Rivers’ investment is based on the acquisition of 13,243 units.
"We think TerrAscend is uniquely positioned to meet the evolving consumer demands in the three largest cannabis markets worldwide," Narbe Alexandrian, president and CEO of Canopy Rivers, said in a statement.
"We strongly believe in TerrAscend's ability to execute on its global strategy, market a diversified brand portfolio and build on its recent acquisitions, and this additional investment is an affirmation of that belief."
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TerrAscend CEO Michael Nashat said the company is "privileged" to have the confidence and support of Canopy Rivers.
"This growth capital enables TerrAscend to accelerate our organic and acquisition-driven investments in our key markets around the globe, as we execute our strategic vision of being a truly global cannabinoid company, committed to scientific innovation and operational integrity."
TerrAscend plans to use the proceeds from the offering to support several of its growth plans, capital expenditures and for general corporate purposes.
The company anticipates completing additional tranches by mid-October.
TerrAscend shares were trading down 1.83% at $3.45 at the time of publication, while Canopy Rivers shares were trading 1.3% higher at $1.56.
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Photo courtesy of The Apothecarium, a TerrAscend subsidiary.
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