NEW YORK and TORONTO, March 15, 2021 /CNW/ – TerrAscend Corp. (“TerrAscend” or the “Company”) (CSE:TER) (OTCQX: TRSSF), a leading North American cannabis operator, today announced that the Ontario Superior Court of Justice approved a settlement agreement (the “Settlement Agreement”) between TerrAscend Canada Inc., a subsidiary of the Company and PharmHouse Inc. (“PharmHouse”), with respect to an offtake agreement dated October 25, 2018 (the “Offtake Agreement”).
Pursuant to the original Offtake Agreement, PharmHouse was required to sell to TerrAscend Canada, cannabis from 20% of its licensed dedicated flowering space in Leamington, Ontario under a supply agreement with mutual obligations.
The Settlement Agreement provides that TerrAscend make a one-time purchase of a specific quantity of cannabis that was grown under the Offtake Agreement for a set price per gram, and for a one-time cash payment to PharmHouse for full and final satisfaction of any claims or obligations between the Company and PharmHouse. Both payments are immaterial to TerrAscend and the Company plans to monetize the purchased cannabis.
We are pleased to have settled and terminated this agreement with PharmHouse. The resolution of this matter in a cost-effective manner further de-risks our Canadian operations.
Jason Ackerman, CEO and Executive Chairman of TerrAscend
The Canadian Securities Exchange (“CSE”) has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
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 a number of synergistic businesses and brands, including The Apothecarium, Ilera Healthcare, State Flower, Valhalla Confections, and Arise Bioscience Inc. For more information, visit www.terrascend.com.
Caution Regarding Cannabis Operations in the United States
Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the US Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute or possess cannabis in the United States. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable US federal money laundering legislation.
While the approach to enforcement of such laws by the federal government in the United States has trended toward non-enforcement against individuals and businesses that comply with medical or adult-use cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve TerrAscend of liability under US federal law, nor will it provide a defense to any federal proceeding which may be brought against TerrAscend. The enforcement of federal laws in the United States is a significant risk to the business of TerrAscend and any proceedings brought against TerrAscend thereunder may adversely affect TerrAscend’s operations and financial performance.