Form: 10-K/A

Annual report pursuant to Section 13 and 15(d)

March 24, 2022

 

 

 

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION 

Washington, D.C. 20549

 

 

FORM 10-K/A

(Amendment No. 1)

 

(Mark One)

 

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended December 31, 2021

`

OR

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM                      TO                     

 

Commission File No. 000-56363

 

TERRASCEND CORP.

(Exact name of Registrant as specified in its Charter)

 

 

 

Ontario N/A

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

   

3610 Mavis Road

Mississauga, Ontario

L5C 1W2
(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: (855) 837-7295

 

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

None

 

Securities registered pursuant to Section 12(g) of the Act:

 

Common Shares 

(Title of class)

 

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨ No x

 

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ¨ No x

 

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

Yes ¨ No x

 

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes x No ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer   ¨   Accelerated filer   ¨
Non-accelerated filer   x   Smaller reporting company   ¨
Emerging growth company   x        

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ¨

 

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

 

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the Registrant computed by reference to the closing price as reported on the Canadian Stock Exchange on June 30, 2021 (the last business day of the Registrant’s most recently completed second fiscal quarter) was, on an as-converted basis, $2,720,645,057.

 

The number of shares of Registrant’s Common Shares outstanding as of March 15, 2022 was 251,863,097.

 

 

 

AuditorFirmId 1930 AuditorName MNP LLP AuditorLocation Toronto, Canada

 

 

 

DOCUMENTS INCORPORATED BY REFERENCE

 

Portions of the Registrant’s definitive Proxy Statement relating to the 2022 Annual Meeting of Shareholders (the “Proxy Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the Registrant’s fiscal year ended December 31, 2021.

 

EXPLANATORY NOTE

 

This Amendment No. 1 on Form 10-K/A (this “Amendment”) is being filed for the year ended December 31, 2021, solely to file Exhibit 23.1 (auditor’s consent), which was inadvertently omitted from the Registrant’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 17, 2022 (the “Original Form 10-K”).

 

Except as otherwise expressly noted herein, this Amendment does not modify or update in any way the information contained in, including the exhibits thereto, the Original Form 10-K, nor does it reflect events occurring after the filing of the Original Form 10-K. Accordingly, this Amendment should be read in conjunction with the Original Form 10-K.

 

In addition, as required by Rule 12b-15 under the Securities Exchange Act of 1934, as amended, this Amendment also includes new certifications from the registrant’s principal executive officer and principal financial officer pursuant to Section 302 of the Sabarnes-Oxley Act of 2002.

 

 

 

 

PART IV

 

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

 

Financial Statements

 

The consolidated financial statements of the registrant are listed in the index to the consolidated financial statements and filed under Item 8 of this Annual Report.

 

Financial Statement Schedules

 

Not Applicable

 

 

 

 

Exhibits

 

        Incorporated By Reference    
Exhibit
Number
  Exhibit Title   Form   File No.   Exhibit   Filing Date   Filed or Furnished
Herewith
                         
2.1   Arrangement Agreement, dated October 8, 2018, by and among TerrAscend Corp., Canopy Growth Corporation, Canopy Rivers Corporation, JW Opportunities Master Fund, Ltd., JW Partners, LP and Pharmaceutical Opportunities Fund, LP.*   10-12G   000-56363   2.1   11/2/2021    
                         
2.2   Securities Purchase Agreement, dated February 10, 2019, by and among BTHHM Berkeley, LLC, PNB Noriega, LLC, V Products, LLC, certain limited liability company interest holders of each of the forgoing entities, Michael Thomsen and TerrAscend Corp. and WDB Holding CA, Inc.*   10-12G   000-56363   2.2   11/2/2021    
                         
2.3   Securities Purchase Agreement, dated February 10, 2019, by and among RHMT, LLC, Deep Thought, LLC, Howard Street Partners, LLC, certain limited liability company interest holders of each of the forgoing entities, Michael Thomsen, and TerrAscend Corp. and WDB Holding CA, Inc.*   10-12G   000-56363   2.3   11/2/2021    
                         
2.4   Securities Purchase and Exchange Agreement, dated August 1, 2019, by and among Ilera Holdings LLC, Mera I LLC, Mera II LLC, TerrAscend Corp., WDB Holding PA, Inc. and Osagie Imasogie.*   10-12G   000-56363   2.4   11/2/2021    
                         
2.5   Securities Purchase Agreement, dated February 10, 2019, by and among Gravitas Nevada Ltd, Verdant Nevada LLC, Green Achers Consulting Limited, TerrAscend Corp. and WDB Holding, NV, Inc.*   10-12G   000-56363   2.5   11/2/2021    
                         
2.6   Arrangement Agreement, dated August 31, 2021, by and between TerrAscend Corp. and Gage Growth Corp.*   10-12G   000-56363   2.6   11/2/2021    
                         
2.7   Membership Interest Purchase Agreement, dated August 31, 2021, by and between WDB Holdings MI, Inc. and 3 State Park, LLC, AEY Holdings, LLC, AEY Capital, LLC, AEY Thrive, LLC and Seller.*   10-12G   000-56363   2.7   11/2/2021    

 

 

 

 

2.8   First Amendment to Membership Interest Purchase Agreement, dated November 9, 2021, by and between WDB Holdings MI, Inc. and 3 State Park, LLC, AEY Holdings, LLC, AEY Capital, LLC, AEY Thrive, LLC and Seller.*   10-12G/A   000-56363   2.8   12/22/2021    
                         
2.9   Amending Agreement, dated October 4, 2021, by and between TerrAscend Corp. and Gage Growth Corp.   10-12G   000-56363   2.8   11/2/2021    
                         
3.1   Articles of TerrAscend Corp., dated March 7, 2017.   10-12G   000-56363   3.1   11/2/2021    
                         
3.2   Articles of Amendment to the Articles of TerrAscend Corp., dated November 30, 2018.   10-12G/A   000-56363   3.2   12/22/2021    
                         
3.3   Articles of Amendment to the Articles of TerrAscend Corp., dated May 22, 2020.   10-12G/A   000-56363   3.3   12/22/2021    
                         
3.4   By-laws of TerrAscend Corp., dated March 7, 2017.   10-12G   000-56363   3.4   11/2/2021    
                         
4.1   Description of Securities.   10-K   000-56363   4.1   3/17/2022    
                         
10.1   Form of Voting Support Agreement.   10-12G   000-56363   10.1   11/2/2021    
                         
10.2   Debenture Agreement, dated March 10, 2020, by and between Canopy Growth and TerrAscend Canada Inc.*   10-12G   000-56363   10.2   11/2/2021    
                         
10.3   Credit Agreement, dated December 18, 2020, by and among WDB Holding PA, Inc., the lenders party thereto and Acquiom Agency Services LLC, as Administrative Agent.   10-12G   000-56363   10.3   11/2/2021    
                         
10.4   Employment Agreement, dated May 1, 2018, by and between TerrAscend Corp. and Michael Nashat.   10-12G   000-56363   10.4   11/2/2021    
                         
10.5   Employment Agreement, dated August 16, 2018, by and between TerrAscend Corp. and Adam Kozak.     10-12G   000-56363   10.5   11/2/2021    
                         
10.6   Independent Contractor Agreement, dated December 1, 2019, by and between TerrAscend Corp. and Lisa Swartzman.   10-12G   000-56363   10.6   11/2/2021    
                         
10.7   Amendment to Independent Contractor Agreement, dated June 2, 2021, by and between TerrAscend Corp. and Lisa Swartzman.   10-12G   000-56363   10.7   11/2/2021    
                         
10.8   Consulting Agreement, dated January 9, 2020, by and between TerrAscend Corp. and JA Connect LLC.   10-12G   000-56363   10.8   11/2/2021    

 

 

 

 

10.9   Employment Agreement, dated December 3, 2020, by and between TerrAscend Corp. and Greg Rochlin.   10-12G   000-56363   10.9   11/2/2021    
                         
10.10   Employment Agreement, dated April 22, 2020, by and between TerrAscend Corp. and Keith Stauffer.   10-12G   000-56363   10.10   11/2/2021    
                         
10.11   Employment Agreement, dated May 1, 2020, by and between TerrAscend Corp. and Jason Ackerman.   10-12G   000-56363   10.11   11/2/2021    
                         
10.12   Separation Agreement, dated March 6, 2020, by and between TerrAscend Corp. and Michael Nashat.   10-12G   000-56363   10.12   11/2/2021    
                         
10.13   Separation Agreement and General Release, dated July 29, 2021, by and between TerrAscend Corp. and Greg Rochlin.   10-12G   000-56363   10.13   11/2/2021    
                         
10.14   Separation Agreement and General Release, dated August 17, 2021, by and between TerrAscend Corp. and Jason Ackerman.   10-12G   000-56363   10.14   11/2/2021    
                         
10.15   Employment Agreement, dated January 5, 2022, by and between TerrAscend USA, Inc. and Ziad Ghanem.   10-12G/A   000-56363   10.15   1/19/2022    
                         
10.16   Form of Indemnity Agreement.   10-12G   000-56363   10.15   11/2/2021    
                         
10.17   TerrAscend Corp. Stock Option Plan.   10-12G/A   000-56363   2.8   12/22/2021    
                         
10.18   Form of Option Agreement.   10-12G/A   000-56363   10.15   1/19/2022    
                         
10.19   TerrAscend Corp. Share Unit Plan.   10-12G/A   000-56363   2.8   12/22/2021    
                         
10.20   Form of Share Unit Agreement.   10-12G/A   000-56363   10.15   1/19/2022    
                         
10.21   Credit Agreement, dated November 22, 2021, by and among Gage Growth Corp. and its subsidiaries, as Borrowers, and Chicago Atlantic Admin, LLC, as Administrative Agent and Collateral Agent.   10-K   000-56363   10.21   3/17/2022    
                         
21.1   List of Subsidiaries of TerrAscend Corp.   10-12G/A   000-56363   21.1   12/22/2021    
                         
23.1   Consent of Independent Registered Public Accounting Firm.                   X
                         
31.1   Certification of Executive Chairman required by Rule 13a-14(a) or 15d-14(a).   10-K   000-56363   31.1   3/17/2022    

 

 

 

 

31.2   Certification of Chief Financial Officer required by Rule 13a-14(a) or 15d-14(a).   10-K   000-56363   31.2   3/17/2022    
                         
31.3   Certification of Executive Chairman required by Rule 13a-14(a) or 15d-14(a).                   X
                         
31.4   Certification of Chief Financial Officer required by Rule 13a-14(a) or 15d-14(a).                   X
                         
32.1   Certification of Executive Chairman pursuant to Section 1350.   10-K   000-56363   32.1   3/17/2022    
                         
32.2   Certification of Chief Financial Officer pursuant to Section 1350.   10-K   000-56363   32.2   3/17/2022    

 

* Certain confidential information has been excluded from this exhibit because it is both (i) not material and (ii) is the type of information of the Company treats as private or confidential.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  TERRASCEND CORP.
(Registrant)
   
Date: March 24, 2022 By: /s/ Keith Stauffer
    Keith Stauffer
    Chief Financial Officer