TerrAscend Targets Acquisitions After Closing $21.7M Financing

TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF) has closed a $21.7 million convertible debenture financing.

The sum includes $11.1 million, which the company used to retire higher-interest convertible debt, reducing borrowing costs and eliminating near-term convertible debt obligations. The remainder is set to be used for the funding of mergers and acquisitions.

The company’s goal is to expand its retail footprint in high-growth markets, TerrAscend said in a press release.

TerrAscend said on Thursday the new debentures will mature on Sept. 30, 2031. They extend the company’s debt maturity profile, carry an 8% annual interest rate and are secured by a second lien on TerrAscend’s U.S. business.

The conversion price is set at $0.87 per share, representing a 25% premium to the 20-day VWAP on the TSX as of June 22, 2026.

In addition, director Edward J. Schutter bought 1,000 debentures for $1 million as part of the private placement.

The move improves the company’s financial flexibility, positioning it to pursue acquisitions, Executive Chairman Jason Wild said in a statement.

“We intend to put this capital to work through accretive acquisitions to grow our retail footprint in the high-growth markets where we already have scale and operational infrastructure,” Wild said. “Together with our continued free cash flow generation and disciplined approach to capital allocation, we have built a balance sheet that gives us the flexibility to act.”

TerrAscend has recently scheduled a special shareholder meeting for Aug. 24, 2026, to vote on a share consolidation. The reverse split is designed to help the company meet the share-price requirements for a potential listing on a major U.S. exchange, such as Nasdaq or the NYSE.

Separately, the company’s first-quarter net revenue totaled $65.5 million, gross margin was 52.8%, and it posted its 15th consecutive quarter of positive operating cash flow. The company also reported generating $7.8 million in free cash flow for the quarter, marking its 11th straight quarter of positive free cash flow.

TSNDF Price Action

TerrAscend’s shares traded 3.13% higher at $0.6652 per share at the time of writing on Friday morning.