TORONTO — TerrAscend Corp., a leading North American cannabis operator, closed a convertible debenture financing in the aggregate principal amount of $21.7 million. $11.1 million of the gross proceeds were used to retire existing higher-interest-rate senior unsecured convertible debentures, with the remainder available for mergers and acquisitions.
The company issued an aggregate of 21,702 senior secured convertible debentures at a price of US$1,000 per debenture. The debentures mature on September 30, 2031, and bear interest at a rate of 8.0 percent per annum, calculated and compounded quarterly, payable in cash, unless otherwise determined by the company. The notes are convertible into common shares of the company at a conversion price equal to US$0.87, representing a 25-percent premium to the 20-day volume-weighted average price of the common shares on the TSX on June 22, 2026. The debentures are secured by a second lien on the U.S. business.
The private placement constitutes a “related party transaction,” because an insider of the company, Edward J. Schutter, participated in the T1 closing. In total, Schutter acquired 1,000 debentures.
