TerrAscend Congratulates PharmHouse on Securing its Cannabis Cultivation Licence from Health Canada
— TerrAscend Canada has a multi-year supply agreement with PharmHouse for 20% of the flowering space of 1.3 million square foot greenhouse
— Cultivation to begin immediately
TORONTO, July 22, 2019 /CNW/ – TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) (“TerrAscend” or “the Company”), the first and only cannabis company licensed for sales in Canada, the US, and Europe is pleased to congratulate the team at PharmHouse Inc. (“PharmHouse”) on securing a cannabis cultivation licence from Health Canada. The licence allows PharmHouse to begin cultivating and supplying cannabis from its 1.3 million square foot greenhouse (the “Facility”) located in Leamington, Ontario. The facility will ramp up its cultivation operations in 190,000 sq. ft of licensed nursery immediately.
TerrAscend’s subsidiary, TerrAscend Canada Inc., previously announced a multi-year cultivation agreement with PharmHouse, a joint venture between Canopy Rivers Inc. (TSXV: RIV, OTC: CNPOF) (“Canopy Rivers”) and the principals and operators of a leading North American greenhouse produce company. Under the terms of the agreement, PharmHouse will grow and supply flower, trim, and clones to TerrAscend Canada from 20% of the dedicated flowering space at the Facility. TerrAscend Canada expects to provide proprietary genetic strains to PharmHouse in conjunction with their operators and quality assurance professionals.
This represents an important milestone for both PharmHouse and TerrAscend and will be another step forward for TerrAscend in our goal of becoming the leading North American Operator.
Robyn Rabinovich, TerrAscend’s VP of Cannabis Strategy and Partnerships
PharmHouse’s cultivation expertise combined with our processing capabilities will enable us to better provide our patients and customers with high quality, greenhouse-grown cannabis. This will advance our Canadian strategy, enhancing our production capabilities with respect to premium products and standardized dosage forms.
For more information, see Canopy Rivers’ announcement here and TerrAscend’s October 15, 2018 announcement of the signing of the agreement with PharmHouse here.
TerrAscend provides quality products, brands, and services to the global cannabinoid market. As the first North American Operator (NAO), with scale operations in both Canada and the US, the Company participates in the medical and legal adult use market across Canada and in several US states where cannabis has been legalized for therapeutic or adult use. Additionally, TerrAscend is the first and only cannabis company licensed for sales in the US, Canada, and Europe as it has received EU GMP certification for its manufacturing facility in Mississauga, Ontario. TerrAscend operates a number of synergistic businesses, including The Apothecarium, an award-winning cannabis dispensary with several retail locations in California and Nevada; Arise Bioscience Inc., a manufacturer and distributor of hemp-derived products; Ascendant Laboratories Inc., a biotechnology and licensing company committed to the continuous improvement of cannabinoid expressing plants; Solace RX Inc., a proposed Drug Preparation Premises (DPP) focused on the development of novel formulations and delivery forms; and Valhalla Confections, a manufacturer of premium cannabis-infused edibles.
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. Following any investment made by TerrAscend in operations in the United States, enforcement of federal laws in the United States will be a significant risk to the business of TerrAscend and any proceedings brought against TerrAscend thereunder may adversely affect TerrAscend’s operations and financial performance.