Canopy Growth makes C$52m strategic investment in TerrAscend

Ontario-based Canopy Growth Corporation has announced that Canopy Growth and Canopy Rivers Corporation, along with funds advised by JW Asset Management LLC have entered into subscription agreements with TerrAscend Corp. pursuant to which the Investors will acquire from TerrAscend, on a non-brokered private placement basis, 47,727,273 units of TerrAscend at a price per Unit of CAD$1.10, for aggregate gross proceeds of CAD$52,500,000.

Each Unit sold in the Private Placement will consist of one common share of TerrAscend (each, a “Common Share”) and one common share purchase warrant of TerrAscend (each, a “Warrant”), with each Warrant entitling the holder to purchase an additional Common Share for a period of 36 months from the closing date
of the Private Placement at an exercise price of CAD$1.10.

“Canopy is excited to be partnering with an emerging pharma focused LP in TerrAscend, and to be collaborating further with Jason Wild, an exceptional global healthcare investor and executive,” said Canopy’s Chairman and CEO, Bruce Linton. “Since first meeting Jason over three years ago, I have been continuously impressed with his unparalleled knowledge of the pharmaceutical sector, the ethical approach he takes with his investments, and the commitment he makes to finishing what he starts with his investee companies. Collaborating with Jason as the new Chairman, and building upon what the team at TerrAscend has accomplished to date is an exciting, strategic, and mutually beneficial value proposition for all parties.”

Jason Wild, President of JW Funds, said: “After evaluating and investing in the emerging cannabis sector for the past several years, I’ve been looking for the right opportunity to take a more active leadership position and make a significant financial commitment with the right company. Partnering with the largest cannabis
company in the world, some of the most knowledgeable cannabis investors in this market, and the pharma focused team of operators at TerrAscend positions us to draw insight from our collective experience and compete successfully in the globally emerging cannabis sector.”

JW Asset Management LLC is a prominent New York based pharmaceutical investor with an extensive portfolio of international pharmaceutical assets. In connection with closing of the Private Placement (the “Closing”), TerrAscend will appoint Jason Wild of JW Funds to the Board of Directors of TerrAscend as its Chairman. Jason is the President of JW Funds and is an accomplished executive with a strong track record accelerating the growth trajectories of
emerging companies.

TerrAscend is a publicly traded Licensed Producer under the Access to Cannabis for Medical Purposes Regulations and operates across various core and complementary business units intended to leverage the company’s unique healthcare expertise, state-of-the-art facility, and strategic centralized location.

TerrAscend has a strong growth plan in place to utilize its 67,300 square foot production facility and clinical on-boarding program.

After entering into the Private Placement, the Investors entered into a definitive agreement to complete a block trade pursuant to the private agreement exemption. JW Funds, Canopy Growth and Rivers will acquire, prior to completion of the Private Placement, 5,220,000 Common Shares, 1,740,000 Common Shares and 1,740,000 Common Shares, respectively at a price of CAD$1.00 per Common Share (CAD$8,700,000 in aggregate).

Closing of the Private Placement is subject to the satisfaction of certain closing conditions.Cannabis Business Worldwide

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