TerrAscend (TSND.TO) after trade Thursday said it completed a $21.7-million convertible debenture financing.
The company added that $11.1 million of the proceeds was used to repay existing higher-interest convertible debentures, while the remaining proceeds will be available to support future mergers and acquisitions.
"This financing retires our near-term convertible debt, reduces our blended interest cost, and extends our convertible debenture maturity to 2031," Executive Chair Jason Wild said.
As part of the financing, the company issued 21,702 senior secured convertible debentures at US$1,000 per debenture, generating total gross proceeds of $21.7 million. The debentures will mature on Sept. 30, 2031, and carry an 8.0% annual interest rate, compounded quarterly and generally payable in cash, the company said.
The debentures can be converted into TerrAscend shares at a conversion price of US$0.87 per share and are secured by a second lien on the company's U.S. business, according to the statement.
The company's shares closed up $0.04 to $0.96 on the Toronto Stock Exchange.