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.
“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.
Lenders from the May 2022 round were offered the same warrant package in exchange for 1 bond point in cash ($10,000 per million funded) or 3% additional Original Issuance Discount.
About AWH:
AWH is a vertically integrated multistate cannabis operator with licenses and assets in Illinois, Michigan, Ohio, Massachusetts, New Jersey, and Pennsylvania. AWH owns and operates state-of-the-art cultivation facilities, growing award-winning strains and producing a curated selection of products for retail and wholesale customers. AWH produces and distributes its in-house Simply Herb, Ozone, and Ozone Reserve branded products. For more information, visit www.awholdings.com.
