U.S. and Canadian marijuana operator TerrAscend borrowed $120 million from a syndicate of lenders to assist finance earn-out payments associated to its acquisition of Ilera Healthcare in Pennsylvania.

The financing, introduced Dec. 18, is senior secured debt that bears an annual rate of interest of 12.875% and matures in 4 years.

The mortgage could also be known as at any time and consists of an choice for a further $30 million in funding.

The lending syndicate was led by Seaport Global Securities and supported by ATB Global, in accordance to a TerrAscend information launch, and included a $25 million contribution from CapStone Holdings.

TerrAscend, which has workplaces in New York and Toronto, introduced the Ilera acquisition, value up to $225 million, in August 2019.

“Due to the strong performance of the business, the sellers are entitled to the maximum earn-out payment, of which $135 million remains,” TerrAscend mentioned in its launch.

The firm reported internet gross sales of 51 million Canadian {dollars} ($39.7 million) for its newest quarter, with a internet lack of CA$17.8 million.

Shares of TerrAscend commerce on the Canadian Securities Exchange beneath the ticker image TER.

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