Cannabis stocks may have had a tough year in 2019, but it seems there is still plenty of money that wants into the space. Evidence of this was TerrAscend Corp.’s (CSE: TER) upsizing of its private placement from $24 million to $30 million. The deal is expected to close on January 7.

The previously announced private placement was said to have generated strong investor interest and oversubscribed demand. The company said that $30 million has been fully allocated and is anticipated to close in two tranches.

TerrAscend said it will use the proceeds from the Private Placement to accelerate the completion of its New Jersey cultivation and processing facilities, to satisfy the previously announced January 2020 contingent purchase price payment related to the acquisition of Ilera Healthcare, and for working capital and general corporate purposes.

Terms

The company closed the first tranche of the Private Placement, issuing 12,968,325 Units at an issue price of CAD$2.45 per Unit resulting in proceeds to the Company of CAD$31,772,412.   Each Unit consists of one common share in the capital of the company and one common share purchase warrant. Each Warrant will be exercisable to acquire one Common Share prior to January 14, 2022 at an exercise price of CAD$3.25 per Warrant Share.

The company has received subscriptions for the entire $30 million, including significant participation from Chairman Jason Wild, Executive Chairman Jason Ackerman, and all of the Company’s additional directors.

Ilera Healthcare

Ilera currently operates a retail dispensary in Plymouth Meeting, PA, with plans to open two additional dispensary sites in the Philadelphia area within the next six months. The operations include a 67,000 square foot site for cultivation and processing in Waterfall, PA with planned expansion to over 120,000 square feet in 2020. In addition to selling its products in its own dispensary, Ilera distributes its dried flower, concentrates, tinctures, and topicals to over 60 dispensaries throughout Pennsylvania. Ilera’s current revenue run-rate is over US$43 million, up from total sales in 2018 of less than US$8 million.

Currently, the Pennsylvania medical marijuana program has more than 180,000 registered patients and 20,000 registered caregivers as of August 2019 and covers 23 qualifying medical conditions including anxiety disorders, cancer, and opioid use disorder.