MJBiz - September/October 2024 - 12

COMPANY NEWS U.S. & International by MJBizDaily Staff
U.S. DEVELOPMENTS
Cannabis MSO Ascend Gets
$235M Private Placement
Cannabis
multistate
operator
Ascend
Wellness Holdings said it
had received commitments to
raise $235 million in a private
placement. The senior secured
notes, expected to price at
94.75% of face value, carry a
12.75% interest rate and are due
in 2029, the New York-based
MSO said in a news release.
Proceeds from the private
placement, along with cash, will
be used to prepay $215 million
of principal under an existing
term loan. The $60 million of
remaining principal under the
loan can be carried through
the due date at a 9.5% interest
rate. The offering was handled
by New York-headquartered
Seaport Global Securities.
Loan Syndicate Provides
$140 Million for TerrAscend
TerrAscend Corp., a Canadianheadquartered
cannabis operator
with U.S. assets, closed on a
$140 million senior secured term
loan from FocusGrowth Asset
Management, a capital provider
to the marijuana sector, and
other loan syndicate members.
According to a news release,
the loan:
* Carries an interest rate of 12.75%
and matures in August 2028.
* Is guaranteed by TerrAscend
and contains no prepayment
penalties.
The loan will be made in two
parts:
* The first disbursement of $114
million will go to TerrAscend's
operations in California,
Maryland and Pennsylvania. The
company used the funding to
retire debt at its Pennsylvania
operations. If money is left over,
it will be used for " potential
M&A transactions focused on
geographic expansion. "
* The second draw of $26 million,
expected in September 2024,
will be used to retire debt at
TerrAscend's businesses in
Michigan.
Metrc Gets $113M Extension
On California Contract
California's
cannabis
regulatory
agency has
extended the state's contract
with Florida-based marijuana
track-and-trace software
company Metrc.
The new contract took effect
July 1, according to California's
Department of Cannabis Control
(DCC), and will run for four years;
the state has an option to extend
the contract another two years.
The contract will not exceed
$28.4 million annually, or
$113.6 million for four years, the
DCC confirmed to MJBizDaily.
Metrc said in a news release
that it would focus on improving
transparency and speeding
up data-driven responses to
support regulators and protect
consumers. According to Metrc,
its traceability system is built to
track the life cycle of cannabisbased
products, including chainof-custody
information and
lab-testing results.
The timing of the contract
extension rankled cannabis
operators throughout the state,
as regulators try to contain
a growing pesticide scandal.
12 September-October 2024 | MJBizMagazine
Despite the proclamations of
accurately tracking cannabis
products throughout the supply
chain, numerous products have
tested positive for banned
pesticides, according to a Los
Angeles Times and WeedWeek
report published in June.
Verano Acquiring Assets
in Arizona, Virginia
Chicago-based marijuana
multistate operator Verano
Holdings Corp. entered into an
agreement with The Cannabist
Co. to acquire the New Yorkheadquartered
MSO's planttouching
operations in Arizona
and Virginia.
Verano will pay $105 million in
cash, stock and promissory notes
to acquire properties in the two
states, growing its footprint to
14 U.S. markets, according to
a news release. As part of the
agreement, Verano will pay
$15 million in cash for The Cannabist
Co.'s Arizona operations,
which include one cultivation
site, one production facility and
its only marijuana retail stores in
Prescott and Tempe.
The assets Verano is purchasing
from The Cannabist Co. in
Virginia include one cultivation
site, one production facility and
six stores. The deal does not
include operations The Cannabist
Co. owns in the Richmond region.
In June, The Cannabist said it
was cutting costs by divesting
all assets and licenses in Florida
and would be closing stores in
Colorado and New York.
Cannabist Selling Florida
Properties For $16.4M
New York-based The Cannabist
Co. is selling all 14 of its Florida
MJBiz - September/October 2024

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