AWH Announces US$28.5M Incremental Senior Debt Financing

- Closes on $28.5M of the incremental draw, bringing the total raised under the Senior Credit Facility to US$275M -NEW YORK, June 30, 2022 /PRNewswire/ - Ascend Wellness Holdings, LLC ("AWH" or the "Company") (CSE: AAWH.U) (OTCQX: AAWH), a multi-state, vertically integrated cannabis operator, today announced that it has closed on $28.5M of the remaining additional funding under the accordion feature of its existing term loan credit facility. As previously announced, the Company drew initial funding of US$210M in August 2021 and subsequently closed on a US$36.5M expansion in May 2022. This additional raise brings the total raised under the Senior Credit Facility to US$275M.
AWH Announces US$28.5M Incremental Senior Debt Financing
"We are thrilled to secure the final $28.5 million of funding under this loan agreement," said Dan Neville, Chief Financial Officer of AWH. "The proceeds from this loan, together with our existing strong balance sheet, will support our near-term CapEx investments and acquisitions as we scale our footprint. I'd like to thank our lenders for the 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."Terms:
Similar to the initial funding, the incremental draw bears a 9.5% interest rate, payable quarterly in arrears, and matures on August 27th, 2025. Lenders received a 4% Original Issuance Discount plus warrants equating to 20% coverage. The aggregate number of warrants issued at closing was 1.84 million ("the Warrants"). Each warrant is exercisable to purchase one common Class A share at an exercise price equal to a 20% premium to the 30-day volume-weighted average price per share at the close, or $3.10 per share including the 20% premium. After the one-year anniversary of closing, AWH has the option to force the holders to exercise the warrants if the share price reaches or exceeds $6.50 for any consecutive 30-day period.
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