On March 11, 2020, Canopy Growth Corporation and TerrAscend Canada Inc., a wholly owned subsidiary of TerrAscend Corp., announced a loan financing arrangement in the amount of $80.5 million pursuant to a secured debenture issued by TerrAscend Canada. In connection with the loan, TerrAscend issued 17,808,975 common share purchase warrants to Canopy Growth.
The loan to TerrAscend Canada bears interest at a rate of 6.10% per annum and matures on March 10, 2030 or such earlier date in accordance with the terms of the debenture. The warrants are comprised of 15,656,242 warrants with an exercise price of $5.14 per TerrAscend share and 2,152,733 warrants with an exercise price of $3.74 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, Jamie Litchen, Tayyaba Khan, Florence Lau, David Singh and Heesoo Kim (Securities and Cannabis), Chuck Rich and Daniel Cipollone (Financial Services and Cannabis), and Ardy Mohajer (Real Estate and Cannabis).