Cannabis company TerrAscend to repurchase $10 million in shares

The board of TerrAscend Corp., a Canadian-headquartered cannabis operator with U.S. assets, authorized management to repurchase $10 million of its common shares over the next 12 months.

TerrAscend Excecutive Chairman Jason Wild said the buyback program – the company’s first – demonstrates TerrAscend’s confidence in its future and the company’s commitment to enhancing shareholder value.

“We are confident in the strength of our business, growth prospects operational excellence and strong cash flow,’” Wild said in a news release announcing the share-repurchase program.

“We believe our equity has compelling value and will be opportunistic with our share repurchases.”

The 10 million shares represent 5% of the public float based on 291.5 million shares outstanding as of Aug. 16, according to a TerrAscend news release.

The company is limited to repurchasing 65,361 shares per day, which represents 25% of the company’s average trading volume of 261,445 shares on the Toronto Stock Exchange (TSX).

TerrAscend does not expect to incur debt to fund the program and is not obligated to repurchase the shares if management determines there is a better use for its cash reserves.

The Ontario-based company recently closed on a $140 million senior secured term loan from FocusGrowth Asset Management, a capital provider to the marijuana industry, and other members of a loan syndicate.

The loan, which has an interest rate of 12.75%, matures in August 2028 and has no prepayment penalties.