TORONTO, Sept. 17, 2019 /CNW/ - PRESS RELEASE - TerrAscend Corp., a global cannabis company licensed for sales in Canada, the U.S., and the EU, has announced it has closed on its previously announced acquisition of Pennsylvania-based Ilera Healthcare, one of five permitted vertically-integrated cannabis cultivator, processor and dispensary operators in the state. With the completion of this transaction, TerrAscend's licensed cannabis footprint expands to four U.S. states, in addition to its global reach into Canada and Europe.
"As one of only five holders of Super Licenses in a limited license state with approximately 13 million people, Ilera is an ideal partner for TerrAscend to enter the Pennsylvania market with," said Matthew Johnson, president of TerrAscend Corp.,and TerrAscend USA, Inc. "We welcome Greg and the rest of the Ilera team to the TerrAscend family, and we look forward to partnering together as we continue to build the leading North American Operator (NAO) in the cannabis space."
Greg Rochlin, CEO of Ilera, said, "By combining forces with TerrAscend, we see clear opportunities ahead for our stakeholders, employees and patients. We look forward to accelerating the growth of Ilera's brands and formulations by leveraging TerrAscend's platform in other markets. I can't wait to introduce our wholesale customers and patients to the California-born Valhalla and State Flower brands, as well as Haven Street, a leading premium Canadian brand."
Osagie Imasogie, Chairman of the Board for Ilera Healthcare, added, "We know that Ilera's original mission to deliver consistent premium cannabis medicines to patients throughout Pennsylvania will be carried on by TerrAscend, who shares our culture, and above all, our commitment to the highest standards of quality and patient service."
Ilera currently operates a retail dispensary in Plymouth Meeting, Penn., with plans to open two additional dispensary sites in the Philadelphia area within the next six months. The operations include a 67,000-square-foot site for cultivation and processing in Waterfall, Penn., with planned expansion to over 120,000 square feet in 2020. In addition to selling its products in its own dispensary, Ilera distributes its dried flower, concentrates, tinctures, and topicals to over 60 dispensaries throughout Pennsylvania. Ilera's current revenue run-rate is over US$43 million, up from total sales in 2018 of less than US$8 million. For more information about Ilera Healthcare, visit http://www.ilerahealthcare.com.
The Pennsylvania medical marijuana program has more than 180,000 registered patients and 20,000 registered caregivers as of August 2019, and covers 23 qualifying medical conditions including anxiety disorders, cancer and opioid use disorder. Those seeking more information about Pennsylvania's medical marijuana program can visit www.medicalmarijuana.pa.gov.
The transaction closed at previously disclosed terms.
TerrAscend reiterates its current 2019 guidance of revenue in excess of C$141 million, which includes contribution from the Ilera transaction and pending disclosed transactions, as previously announced on Aug. 22, 2019.