TORONTO, June 8, 2023 –
PRESS RELEASE – TerrAscend Corp.,
a leading North American cannabis operator, announced that on June 7, 2023,
it entered into a definitive agreement to acquire Derby 1 LLC (doing business
as “Peninsula Alternative Health”), a medical dispensary in Maryland. The
transaction will add a second dispensary to the TerrAscend’s Maryland footprint
in advance of adult-use sales, which will begin on July 1, 2023.
Under the terms of the
agreement, TerrAscend will acquire Peninsula Alternative Health (Peninsula) for
total consideration of US$22.1 million, including US$1.5 million in cash, with
the remainder in a combination of existing debt, a seller’s note, and stock.
The transaction, which is expected to be immediately accretive to TerrAscend on
an EBITDA and cashflow basis, is subject to customary closing conditions,
including regulatory approval.
Peninsula is one of the
highest performing medical dispensaries in Maryland with a net revenue run rate
in 2023 of approximately US$14 million. Strategically located near the Delaware
border in Salisbury, Md., this 8,500-square-foot dispensary has no direct
competitor within a 25-mile radius. TerrAscend expects to achieve significant
sales and margin improvement by supplying a complete selection of its
high-quality brands, including Kind Tree, Gage, Cookies and Wana. Following the
close of the transaction, TerrAscend's retail footprint will increase to 35
dispensaries nationwide.
“Adding a second, high-performing
medical dispensary in Maryland is an important step in our strategy to become a
market leader in the state,” TerrAscend Executive Chairman Jason Wild said. “We
expect Peninsula to quickly become one of our highest performing dispensaries
nationwide. With less than 30 days until the launch of adult use in Maryland,
we are focused on additional acquisitions and reaching the four-dispensary cap
as our northeast business unit will soon be operating in Maryland under the
same successful business model we built in NJ.”
