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The four-year term bears interest at 9.5%
Refinances existing debt by reducing the cost of capital
Strengthens the balance sheet to support investment in the US growth strategy
NEW YORK, August 30, 2021 / PRNewswire / – Ascend Wellness Holdings, Inc. (“AWH” or the “Company”) (CSE: AAWH.U) (OTCQX: AAWH), a leading multi-state and vertically integrated cannabis operator, announced today ‘hui having closed the one 210 million US dollars Senior Secured Term Loan (the “Term Loan”) with Seaport Global Securities LLC as lead manager. AWH intends to use the proceeds to (i) repay substantially all of the Company’s debt, except for approximately $ 12 million ongoing acquisition payments with near zero interest rates, (ii) fund the Company’s ongoing investment in MedMen NY, Inc. and (iii) support future growth and acquisition initiatives of the society. This term loan further strengthens the company’s strong cash position. Before the term loan closes, at the end of the second quarter 2021, ending June 30, 2021, the Company had $ 104.2 million in cash and equivalents.
“I am delighted to obtain this non-dilutive financing which both lowers our overall cost of capital and will fuel our business growth as we invest in expanding our strategic footprint. We have seen considerable interest and healthy participation in the term loan. Our The go-to-market process, led by Seaport Global Securities, presented us with a very high quality mix of institutional investors, family offices and hedge funds. We are delighted to include this new class of stakeholders in our capital structure through senior debt financing and look forward to the opportunity to expand our relationship with many of these investors over time for future purposes. debt and equity financing. “mentioned Abner kurtin, founder and CEO of AWH. “We are actively building one of the strongest networks of retail stores and growers in markets of the highest quality. With our strong balance sheet and successful track record, we are well positioned to execute our growth strategies to take advantage of the significant market opportunity ahead and generate strong value for our shareholders. “
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 the assets of the Company. Subject to certain conditions of the agreement, the Company has the option of increasing the facility up to a maximum of US $ 65 million if desired.
The placement was led by Seaport Global Securities LLC and co-managed by ATB Capital Markets.
About Ascend Wellness Holdings, Inc.
AWH is a vertically integrated operator with assets in Illinois, Michigan, Ohio, Massachusetts, and New Jersey. AWH owns and operates state-of-the-art cultivation facilities, cultivating award-winning varieties and producing an organized product selection. AWH manufactures and distributes Ozone brand products. For more information visit www.awholdings.com.
Forward-looking statements
This press release contains forward-looking information and statements, which may include, but are not limited to, information and statements regarding the plans, intentions, expectations, estimates and beliefs of the Company. Words such as “expect”, “continue”, “will”, “anticipate” and “intention” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the Company’s current projections and expectations regarding future events and financial trends, and on certain assumptions and analyzes made by the Company in light of experience and perception of historical trends, conditions. current and expected future developments and other factors. management believes they are appropriate.
Forward-looking information and statements involve and are subject to assumptions and to risks, uncertainties and other known and unknown factors which may cause the actual events, results, performance or achievements of the Company to be materially different from events, results, performance, and achievements expressed or implied by the forward-looking information and statements contained herein. These factors include, among others: the risks and uncertainties identified in the Company’s quarterly report on Form 10-Q for the quarter ended March 31, 2021, and in other Company reports and filings with applicable Canadian securities regulators and the United States Securities and Exchange Commission. Although the Company believes that the forward-looking information and statements contained in this document are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that such information and statements forward-looking statements will prove to be correct and, therefore, readers are urged to rely on their own assessment of these risks and uncertainties and not to place undue reliance on such forward-looking information and statements. All forward-looking information and statements contained herein are made as of the date hereof, and except as required by applicable law, the Company assumes no obligation and disclaims any intention to update or revise the information and statements. forward-looking statements contained herein or to update the reasons that actual events or results may differ or differ from those projected in the forward-looking information and statements contained herein, whether due to new information, events or future results, or otherwise, except as required by applicable law.
CSE has not reviewed, approved or disapproved of the contents of this press release.
SOURCE Ascend Wellness Holdings, Inc.
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