- Expands core Northeast footprint to include Maryland
- Cultivation and processing capacity in Maryland to be significantly expanded by late 2021
NEW YORK and TORONTO, May 4, 2021 /CNW/ – TerrAscend Corp. (“TerrAscend” or the “Company”) (CSE: TER) (OTCQX: TRSSF), a leading North American cannabis operator, today announced the completion of its previously announced acquisition of HMS Health, LLC and HMS Processing, LLC, (collectively “HMS”) from Curaleaf Holdings, Inc (“Curaleaf”) (CSE: CURA, OTCQX: CURLF) for a total consideration of $27.5 million, comprised of $25.0 million in cash prior to net adjustments and a $2.5 million note which bears 5.0% annual interest, due October 2022. The acquisition is expected to be immediately accretive to TerrAscend on an EBITDA basis.
Currently, HMS produces and sells dried flower and oil products for the wholesale medical cannabis market from an existing 22,000 square foot cultivation and processing facility. TerrAscend intends to introduce its portfolio of brands including Kind Tree, Ilera, and Prism, along with a suite of edibles products, upon regulatory approval. During the second half of 2021, The Company plans to significantly expand its capacity to cultivate high-quality indoor flower in the state.
We are thrilled to officially enter Maryland, a limited license medical cannabis market with strong long-term growth potential that is adjacent to our core Northeast markets of Pennsylvania and New Jersey. Our strong East Coast management team and corporate support functions are already in place and we expect to generate synergies by standardizing processes and introducing our portfolio of high-quality branded flower and manufactured products.
Jason Wild, Executive Chairman of TerrAscend
We plan to scale our cultivation and processing capability to supply the underserved Maryland market while continuing to strategically evaluate opportunities to vertically integrate in the state.
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, licensed cultivation and processing operations in Maryland and licensed production 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.