Ascend Wellness Holdings, Inc. announced that it has closed on USD 28.5 Million 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 USD 210 Million in August 2021 and subsequently closed on a USD 36.5 Million expansion in May 2022. This additional raise brings the total raised under the Senior Credit Facility to USD 275 Million.

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.

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 USD 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 USD 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 (USD 10,000 per million funded) or 3% additional Original Issuance Discount.