TerrAscend Adds Three Pennsylvania Dispensaries With $63 Million Additional Investment

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TerrAscend Doubles Dispensary Footprint in Pennsylvania Through Acquisition of Keystone Canna Remedies
  • Acquires Three Operating Dispensaries in Northeast Pennsylvania
  • Purchase price represents a mid-single digit multiple of KCR’s expected 2021 EBITDA

NEW YORK and TORONTO, April 20, 2021 /CNW/ – TerrAscend Corp. (“TerrAscend” or the “Company”) (CSE:TER) (OTCQX: TRSSF), a leading North American cannabis operator, today announced it has entered into a definitive agreement to acquire GuadCo, LLC and KCR Holdings LLC (collectively “KCR”) for an implied enterprise value of US$70 million (the “transaction”). Upon close, the transaction will add three retail dispensaries located in Bethlehem, Allentown and Stroudsburg to complement the Company’s existing retail footprint in Southeastern Pennsylvania.

As an operator of three well managed dispensaries in the Northeast region of Pennsylvania, KCR expands TerrAscend’s retail footprint, diversifies the Company’s customer base and enhances margins through deeper vertical integration. The transaction will be immediately accretive upon closing, which is expected to occur in the second quarter, subject to customary regulatory approvals.

The Pennsylvania medical cannabis market is a key focus for the Company. This transaction doubles our owned footprint to six dispensaries in the state and provides patients in Pennsylvania’s Northeast region access to TerrAscend’s outstanding products, service, and support. This expanded retail footprint further solidifies our position as the leading branded cultivator and manufacturer in Pennsylvania.

Jason Wild, Executive Chairman of TerrAscend

Transaction Details

TerrAscend currently owns 10% of KCR and will acquire the remaining 90% of the equity for total consideration of $63 million, comprised of $36 million in stock, $20.25 million in cash and a $6.75 million note. The purchase price is expected to represent a mid-single digit multiple of KCR’s 2021 EBITDA.

About TerrAscend

TerrAscend is a leading North American cannabis operator with vertically integrated operations in Pennsylvania, New Jersey, and California in addition to operating as a licensed producer in Canada. TerrAscend operates an award-winning chain of Apothecarium dispensary retail locations as well as scaled cultivation, processing and manufacturing facilities on both the East and West coasts. TerrAscend’s best-in-class cultivation and manufacturing practices yield consistent, high-quality cannabis, providing industry-leading product selection to both the medical and legal adult-use market. The Company owns several synergistic businesses and brands, including The Apothecarium, Ilera Healthcare, Kind Tree, Prism, State Flower, Valhalla Confections, and Arise Bioscience Inc. For more information, visit www.terrascend.com.

Original Press Release

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Published by NCV Newswire
NCV Newswire
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