Canopy awards TerrAscend with $80.5M loan, potentially could take 15% stake in operator

Canopy Growth announced a loan agreement with TerrAscend to give the cannabis operator $80.5 million in a secured debenture agreement, the companies both announced on Wednesday. In return, TerrAscend will award Canopy with 17.8 million in common share purchase warrants over two separate tranches that can be exercised as early as March 2030, or when the U.S. makes cannabis federally permissable. TerrAscend said it plans to use the loan proceeds for general corporate purposes and to fund its Canadian operations. Stifel analyst Robert Fagan said the terms of the deal are “quite attractive, given cost of capital in the mid-upper single digits” and provides TerrAscend with a reliable source of funding without any refinancing risk over the near term. The deal would also place Canopy’s potential ownership stake in TerrAscend to about 15 per cent, Stifel said.

TGOD Q4 earnings show deep losses, scant revenue amid recalibration of global strategy

The Green Organic Dutchman said it made $3.25 million in revenue during its fourth quarter, $690,000 of which were attributed to the company’s domestic business, the company said late Tuesday. Toronto-based TGOD said its fourth-quarter net loss came to $144.7 million after taking an impairment charge of $127.4 million it attributed to its Canadian assets and its investment in Jamaica’s Epican Medicinals. TGOD said it decided to “forgo” its expansion of its Jamaican subsidiary in order to focus on its Canadian operations. Jefferies analyst Owen Bennett said that while the quarterly results are generally in line with expectations, some of the conversations he’s had with investors suggest that there’s little confidence in the company’s management to navigate the current state of the industry.

Harvest to issue US$100M in private placement, Vedadi steps down as executive chairman

U.S. cannabis operator Harvest Health & Recreation said it will issue up to US$100 million in equity in a private placement offering, while announcing its executive chairman will resign from the company’s board. Harvest said its already raised US$56 million of its private placement, which will be earmarked for capital expenditures and pending acquisitions. The company also said Jason Vedadi will step down from his role as executive chairman and be retained as a special advisor. Harvest CEO Steve White will assume full responsibility for the executive team, while director Mark Barnard will become chairman of the company.



DAILY BUZZ



US$1.52 billion



-- The amount of equity and debt raised by cannabis companies in the first 10 weeks of this year, according to Viridian Capital Advisors. That compares to $3.56 billion raised during the same period a year ago.

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