Staff
TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) entered into a definitive agreement to acquire Herbiculture Inc. (dba Herbiculture), a medical dispensary in Burtosnville, Maryland, for total consideration of $8.25 million.
With this transaction, TerrAscend will reach the four dispensary cap in the state. With the upcoming launch of adult-use on July 1, the company believes that Herbiculture is well positioned to achieve substantial sales and profit growth.
Under the terms of the agreement, the total $8.25 million will be comprised of $3 million in cash, with the remainder in a seller’s note.
The transaction, which is expected to be immediately accretive to TerrAscend on an EBITDA and cashflow basis, has already been approved by the Maryland Cannabis Administration and is expected to close in the coming days.
Herbiculture has a net revenue run rate of approximately $4.3 million.
“Adding a fourth dispensary in Maryland is an important step in our strategy to become a market leader in the state. We anticipate that Herbiculture, combined with our other Maryland dispensaries, will drive substantial revenue growth and profitability,” said Jason Wild, executive chairman of TerrAscend. “We look forward to serving more consumers in Maryland with the start of adult-use sales in this state, and intend to utilize the same, successful strategy and business model that we built in New Jersey.”
