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.