CANADA – Canopy Growth Corporation, Canada’s leading cannabis infused beverage company and TerrAscend Canada, have entered into a loan financing arrangement worth C$80.5 million (US$58.15m).
As part of the financing arrangement, TerrAscend has issued 17,808,975 common share purchase warrants to Canopy Growth. Canopy Growth initially co-invested in TerrAscend in November 2017.
In November 2018, Canopy Growth announced the completion of a restructuring transaction with TerrAscend, in which TerrAscend restructured its share capital.
“TerrAscend Canada has proven its ability to thrive and this loan is a strong signal that Canopy Growth is confident in their ability to execute over the long term,” said David Klein, CEO, Canopy Growth.
“We are encouraged by TerrAscend’s strong performance and we view the team’s experience as an important contributor to its continued success.”
TerrAscend intends to use the net proceeds to finance its Canadian operations, its Arise Bioscience U.S. hemp division, international expansion, to repay debts and for general corporate purposes.
“We are pleased to receive this loan from Canopy Growth as we enter into the next stage of TerrAscend’s growth and expansion,” said Jason Ackerman, Executive Chairman and Interim CEO.
“We look forward to continuing to work with Canopy Growth as new opportunities emerge and the regulatory landscape evolves.”
As part of the agreement, the funds cannot be used in any cannabis or cannabis-related operations in the United States until such operations comply with all applicable laws of the United States.
“This additional capital is a vote of confidence in TerrAscend Canada’s ability to execute on its strategic mandate for both domestic and international markets,” added Narbe Alexandrian, President and Chief Executive Officer, Canopy Rivers.
“We believe the TerrAscend team is well-positioned through their resources and network to continue to take advantage of opportunities in regulated jurisdictions. We are also pleased with Canopy Growth’s continued support of our portfolio companies.”