Vertically integrated cannabis company Ascend Wellness Holdings, Inc. AAWH AAWH announced Monday it has closed on a $210 million Senior Secured Term Loan with Seaport Global Securities LLC as lead manager.
The multi-state operator plans to use the proceeds to (i) repay substantially all of the company's debt excluding approximately $12 million of outstanding acquisition payments with near-zero interest rates, (ii) finance the company's pending investment in MedMen NY, Inc. and (iii) support the company's future growth and acquisition initiatives.
Prior to closing the Term Loan, on June 30, 2021, the company had $104.2 million in cash and equivalents.
"I am thrilled to secure this non-dilutive financing which both reduces our overall cost of capital and will fuel the growth of our business as we invest in scaling our strategic footprint,” Abner Kurtin, founder and CEO of Ascend Wellness said. “We saw tremendous interest and had healthy participation in the Term Loan. Our marketing process, lead-managed by Seaport Global Securities, introduced us to a very high-quality mix of institutional investors, family offices and hedge funds."
The term loan will bear interest of 9.5% per annum, payable quarterly in arrears, with a maturity date of August 27, 2025. The Term Loan is secured by a first lien on all company assets. Subject to certain conditions of the agreement, the company has the ability to increase the facility by up to US$65 million if desired.
The placement was lead & managed by Seaport Global Securities LLC and co-managed by ATB Capital Markets.
More recent news from Ascend Wellness:
Ascend Wellness Holdings Cannabis Commences Trading On OTCQX In The US
Price Action
Acend Wellness’ shares closed Friday market session 1.84% higher at $10.50 per share.
Photo: Courtesy of Michael Longmire on Unsplash
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