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Canopy USA Converts CAD$125.5 Million in TerrAscend Debt to Exchangeable Shares at CAD$5.10 per Share
Canopy USA Converts CAD$125.5 Million in TerrAscend Debt to Exchangeable Shares at CAD$5.10 per S...
About this update from Terrascend Corp.
[{"type":"text","content":"\n \n \n \n Canopy USA Converts CAD$125.5 Million in TerrAscend Debt to Exchangeable Shares at CAD$5.10 per Share\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n Transaction increases Canopy\n \n USA's\n \n conditional ownership in TerrAscend from 12.0% to 18.2% with the ability to own 23.4% upon the exercise of newly issued warrants\n \n \n \n \n Significant deleveraging event for TerrAscend as it has now retired\n \n USD$120 million\n \n (\n \n CAD$160 million\n \n ) of debt in recent weeks, reducing annual cash interest expense by\n \n USD$10 million\n \n (\n \n CAD$13.5 million\n \n )\n \n \n \n \n \n TORONTO\n \n \n ,\n \n \n Dec. 9, 2022\n \n \n /CNW/ -\n \n TerrAscend Corp.\n \n (\"\n \n TerrAscend\n \n \") (CSE:TER) (OTCQX: TRSSF), a leading North American cannabis operator, today announced it has entered into an arrangement dated\n \n December 9\n \n , 2022 with Canopy\n \n USA\n \n , LLC (\"Canopy\n \n USA\n \n \") and certain of its subsidiaries to convert\n \n CAD$125.5 million\n \n in aggregate loans plus accrued interest in exchange for 24,601,467 exchangeable shares in the capital of TerrAscend (the \"Exchangeable Shares\") at a notional price of\n \n CAD$5.10\n \n per Exchangeable Share and 22,474,130 new common share purchase warrants (the \"New Warrants\" and together with the Exchangeable Shares, the \"New Securities\") to acquire common  shares in the capital of TerrAscend (the \"Common Shares\") at a weighted average exercise price of\n \n CAD$6.07\n \n per common share.\n \n \n \n Jason Wild\n \n , Executive Chairman of TerrAscend, stated, \"Canopy\n \n USA\n \n continues to be a trusted investor and partner. We thank them for their continued support as they increase their conditional ownership in the Company. This transaction, combined with the recent\n \n USD$30 million\n \n pay down of our\n \n Michigan\n \n loan, materially improves our balance sheet and reduces annual interest expense by approximately\n \n USD$10 million\n \n .\"\n \n \n TerrA...