08:51 AM EDT, 10/01/2024 (MT Newswires) -- TerrAscend Corp. ( TSNDF ) , a North American cannabis company, that saw its shares drop 3.35% yesterday, on Tuesday announced that certain entities consolidated by the company in Michigan have completed the second draw of US$26 million in gross proceeds of the company's senior secured term loan for total gross proceeds of US$140 million.

A statement noted these are from funds managed by FocusGrowth Asset Management, LP, a capital provider to the cannabis sector, along with other members of a loan syndicate, which was previously announced on August 2, 2024.

It said the proceeds from the second draw were used to pay down the company's higher interest Michigan debt. The loan included an initial draw of US$114 million in gross proceeds, completed in August 2024, bringing the total gross proceeds under the transaction to US$140 million.

Tuesday's statement noted the loan carries an interest rate of 12.75%, matures in August 2028, contains no prepayment penalties and is guaranteed by the company and TerrAscend USA, Inc. No warrants were issued as part of the loan.