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By MJBizDaily Staff
North American marijuana company TerrAscend Corp. said it closed on a $25 million commercial loan with Stearns Bank.
The Mississauga, Ontario-headquartered cannabis operator said the proceeds would be used to pay down higher interest-rate debt.
The loan has an interest rate of prime plus 2.25% – currently 10.5% – and matures in December 2024.
“Our team has worked tirelessly over the last twelve months to transform our balance sheet, lower expenses, improve margins and drive positive cashflow, all while leading the industry in revenue growth,” Executive Chair Jason Wild said in a statement.
Separately, TerrAscend said it entered into a definitive agreement to acquire Hempaid, a medical marijuana dispensary in Maryland.
Hempaid does business as Blue Ridge Wellness.
The acquisition increases TerrAscend’s footprint in the state to three stores.
Adult-use sales are set to commence in Maryland on July 1.
According to the terms of the agreement, TerrAscend will acquire Blue Ridge for $6.75 million, including $3 million in cash.
After the acquisition closes, TerrAscend’s retail footprint will increase to 36 stores in the United States.
The company also has operations in California, Michigan, New Jersey and Pennsylvania as well as Canada.
TerrAscend said Blue Ridge is currently on a revenue run rate of approximately $4.3 million.
The company said it plans to relocate the store to a new, larger storefront it has already secured.
TerrAscend expects to complete the relocation in the next six months.
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