Ascend Wellness Holdings, Inc. (CSE:AAWH) (OTCQX:AAWH) has closed on $28.5 million of the remaining additional funding under the accordion feature of its existing term loan credit facility. The company drew initial funding of $210 million in August 2021 and subsequently closed on a $36.5 million expansion in May 2022. This additional raise brings the total raised under the senior credit facility to $275 million.
"We are thrilled to secure the final $28.5 million of funding under this loan agreement," stated Dan Neville, CFO of AWH. "The proceeds from this loan, together with our existing strong balance sheet, will support our near-term CapEx investments and acquisitions as we scale our footprint. I'd like to thank our lenders for the continued support and look forward to continuing to execute our growth strategy focused on some of the most exciting markets in the Midwest and Northeast."
Similar to the initial funding, the incremental draw bears a 9.5% interest rate, payable quarterly in arrears, and matures on August 27th, 2025. Lenders received a 4% original issuance discount plus warrants equating to 20% coverage. The aggregate number of warrants issued at closing was 1.84 million. Each warrant is exercisable to purchase one common class A share at an exercise price equal to a 20% premium to the 30-day volume-weighted average price per share at the close, or $3.10 per share including the 20% premium. After the one-year anniversary of closing, AWH has the option to force the holders to exercise the warrants if the share price reaches or exceeds $6.50 for any consecutive 30-day period.
Lenders from the May 2022 round were offered the same warrant package in exchange for 1 bond point in cash or 3% additional original issuance discount.
Photo by Mackenzie Marco on Unsplash
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