Ascend Wellness closes $28.5 million of remaining financing under its existing credit facility

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Ascend Wellness Holdings, Inc. AAWH AAWH closed at $28.5 million remaining additional funding under the accordion portion of its existing term credit facility. The company secured initial funding of $210 million in August 2021 and then closed a $36.5 million expansion in May 2022. This additional increase brings the total collected under the ssuperior vsrepeat Fcapacity at $275 million.

“We are delighted to secure final financing of $28.5 million 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 seed funding, the supplemental draw carries a 9.5% interest ratepayable quarterly in arrears and matures 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. 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% bonus. 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 consecutive 30-day period.

Lenders in the May 2022 round were offered the same set of warrants in exchange for 1 bond point in cash or an additional 3% initial discount on the issue.

picture by Marco Mackenzie on Unsplash

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