On December 10, 2020, Canopy Growth Corporation and Arise Biosciences, Inc., a wholly owned subsidiary of TerrAscend Corp., announced a loan financing arrangement in the amount of US$20 million pursuant to a secured debenture issued by Arise. In connection with the loan, TerrAscend issued 2,105,718 common share purchase warrants to Canopy Growth.
The loan to Arise bears interest at a rate of 6.10% per annum and matures on December 9, 2030 or such earlier date in accordance with the terms of the debenture. The warrants are comprised of 1,926,983 warrants with an exercise price of $15.28 per TerrAscend share and 178,735 warrants with an exercise price of $17.19 per TerrAscend share. The warrants will be exercisable by Canopy Growth following changes in U.S. federal laws permitting the cultivation, distribution and possession of marijuana or to remove the regulation of such activities from the federal laws of the United States.
Cassels represented Canopy Growth with a team comprised of Jonathan Sherman (Securities and Cannabis) and Chuck Rich, Daniel Cipollone and Paras Patel (Banking & Specialty Finance and Cannabis).