Multistate marijuana company TerrAscend Corp. has taken a senior secured term loan from cannabis real estate lender Pelorus Equity Group for gross proceeds of $45.5 million.
The nonbrokered loan to TerrAscend’s New Jersey and Maryland subsidiaries carries a variable interest rate that currently bears 12.77% annually.
The loan matures in five years, with interest-only payments for the first three years.
Proceeds “will be used to fund the company’s growth initiatives,” TerrAscend in a Wednesday morning news release.
TerrAscend struck a deal this year to expand its Maryland operations by acquiring a medical marijuana dispensary for $11.7 million and was one of the companies approved for adult-use operations in New Jersey.
TerrAscend also operates in California, Michigan and Pennsylvania as well as in Canada.
In a statement, TerrAscend Executive Chair Jason Wild described the loan as “non-dilutive financing at attractive terms given the current market environment.”
The loan is secured by TerrAscend real estate in New Jersey and Maryland, according to a Pelorus news release.
Pelorus said it has completed 72 commercial real estate loan deals to date.
TerrAscend shares trade as TER on the Canadian Securities Exchange and as TRSSF on the U.S. over-the-counter markets.