– Closes on $28.5M the additional drawdown, bringing the total raised under the Senior Credit Facility to US$275 million –
NEW YORK, June 30, 2022 /PRNewswire/ – Ascend Wellness Holdings, LLC (“AWH” or the “Company”) (CSE: AAWH.U) (OTCQX: AAWH), a vertically integrated cannabis operator in multiple states, today announced that it had closed the $28.5M additional funding remaining under the accordion component of its existing term credit facility. As previously announced, the Company drew seed funding of 210 million US dollars in August 2021 and next closed on a US$36.5 million expansion in May 2022. This additional increase brings the total raised under the Senior Credit Facility to 275 million US dollars.
“We are delighted to have won the final $28.5 million funding under this loan agreement,” said Dan Neville, CFO of AWH. “The proceeds of this loan, along with our existing strong balance sheet, will support our near-term CapEx investments and acquisitions as we expand our footprint. I would like to thank our lenders for their 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 financing, the additional drawdown bears an interest rate of 9.5%, payable quarterly in arrears, and matures on August 27e, 2025. The lenders received an initial issue discount of 4% plus warrants equivalent to 20% coverage. The total number of warrants issued at closing was 1.84 million (“the Warrants”). Each warrant is exercisable to purchase one Class A common share at an exercise price equal to a 20% premium to the 30-day volume-weighted average price per share at closing, or $3.10 per share including the 20% premium. After the first anniversary of closing, AWH has the option to force holders to exercise the warrants if the stock price reaches or exceeds $6.50 for any period of 30 consecutive days.
The lenders of May 2022 round were offered the same warrant package in exchange for 1 bond point in cash ($10,000 per million financed) or an additional 3% discount on the original issue.
AWH is a vertically integrated, multi-state cannabis operator with licenses and assets in Illinois, Michigan, Ohio, Massachusetts, New Jerseyand Pennsylvania. AWH owns and operates state-of-the-art cultivation facilities, cultivating award-winning varieties and producing a curated selection of produce for retail and wholesale customers. AWH produces and distributes its own Simply Herb, Ozone and Ozone Reserve branded products. For more information, visit www.awholdings.com.
This press release contains forward-looking information and statements, which may include, but are not limited to, information and statements regarding the Company’s plans, intentions, expectations, estimates and beliefs, including those related to the timing of loan closing and the execution of the Company’s strategy. These forward-looking statements include, among other things, statements relating to the Company’s intended use of the loan proceeds and the Company’s growth strategy. Words such as “expects”, “continues”, “will”, “anticipates” and “intends” 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, current conditions and expected future developments and other factors. management deems appropriate.
Forward-looking information and statements involve and are subject to known and unknown assumptions and risks, uncertainties and other factors that may cause the Company’s actual events, results, performance or achievements to differ materially from the events, results, performance, and the 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 Annual Report on Form 10-K for the year ended December 31, 2021, and in the Company’s other reports and filings with applicable Canadian securities regulators and the United States Securities and Exchange Commission. Although the Company believes that all forward-looking information and statements contained herein 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 accurate and, accordingly, readers are urged to rely on their own assessment of such 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 undertakes 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 could differ or differ from those projected in the forward-looking information and statements herein, whether as a result of new information, events or results future, or otherwise, except as required by applicable law.
Neither the Canadian Securities Exchange nor its regulation services provider accepts responsibility for the adequacy or accuracy of this release.
Show original content to download multimedia:https://www.prnewswire.com/news-releases/awh-announces-us28-5m-incremental-senior-debt-financing-301579210.html
SOURCEAscend Wellness Holdings, Inc.