JW Asset Injects $31.5 Million Into TerrAscend Through Warrant… – New Cannabis Ventures

TerrAscend Announces Early Warrant Exercise for Proceeds of $31.5 Million

TORONTO, Aug. 27, 2019 /PRNewswire/ – TerrAscend Corp. (CSE: TER;OTCQX: TRSSF) (“TerrAscend” or the “Company”) the first and only cannabis company licensed for sales in Canada, the US, and the EU, today announced the early exercise of purchase warrants to acquire proportionate voting shares representing 28,636,361 common shares of the Company (the “Warrants”) for aggregate proceeds of approximately CDN$31.5 million.

All of the outstanding Warrants were held by funds advised by JW Asset Management, LLC which are affiliates of Mr. Jason Wild, Chairman of the Company. Each Warrant entitled the holder to acquire one proportionate voting share (on an as converted basis) on or before December 8, 2020 at an exercise price of CDN$1.10.

The Company has agreed to issue to the Warrant holders additional purchase warrants (“Incentive Warrants” or the “Incentive Program”) to acquire a total of 8,590.908 proportionate voting shares (8,590,908 common shares on an as-converted basis), representing 0.3 Incentive Warrants for each Warrant exercised early.  Each Incentive Warrant entitles the holder to purchase one common share, on an as-converted basis, at an exercise price of CDN$7.21 on or before August 23, 2022.  The Incentive Warrants, and any shares issuable upon the exercise thereof, are subject to a four month hold period from the date on which the Incentive Warrants were issued.

The Incentive Program and early exercise as implemented provides a cost-effective source of financing for TerrAscend.

The proceeds from the Warrant exercise are expected to be used to fund the Company’s recently announced growth initiatives and for general working capital purposes.

The early exercise provides TerrAscend with capital in a timely and efficient manner. We value our relationship with JW Asset Management, LLC and appreciate their continued support of our strategy to develop and acquire premium brands, while continuing to build a global footprint.

Michael

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