Ascend Wellness Holdings, Inc. (CSE: AAWH.U) announced today that it recently completed a US $ 210 million financing offering senior secured term loans bearing 9.5% annual interest. The placement was managed by Seaport Global Securities as lead manager.
Under the terms of the loan, interest will be payable quarterly in arrears. The debt is secured by a first lien on all of the company’s assets and is due on August 27, 2025.
“We are actively building one of the strongest networks of retail stores and growers in markets of the highest quality. With our strong balance sheet and successful track record, we are well positioned to execute our growth strategies to take advantage of important upcoming market opportunities and generate strong value for our shareholders, ”said Abner Kurtin, CEO of Ascend Wellness.
The financing is expected to bolster the company’s cash position which stood at $ 104.2 million at the end of the second quarter of 2021. Under certain conditions, the loan facility can also be increased up to $ 65 million if society wants it.
The cannabis operator intends to use the proceeds of the placement to repay the debts of the business, with the exception of approximately US $ 12 million in unpaid acquisition payments, to finance the investment in expectation in MedMen NY and to support future growth initiatives.
Ascend Wellness Holdings last traded at US $ 10.50 on the CSE.
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