TORONTO, Feb. 11, 2019 /PRNewswire/ – PRESS RELEASE – TerrAscend Corp. has announced the signing of definitive securities purchase agreements facilitating a significant investment in three entities in California operating the retail dispensary brand known as “The Apothecarium." The purchase agreements also include the acquisitions of a vertically integrated operation in Nevada with cultivation, edible manufacturing and an Apothecarium retail location, as well as Valhalla Confections, a provider of leading premium edible products.
The Apothecarium’s four retail dispensaries in California and Nevada provide cannabis to both medical patients and adult-use customers. The company’s flagship location has been named the best-designed dispensary in the country by Architectural Digest. TerrAscend has agreed to pay cash consideration of US$73.7mm plus proportionate voting shares in the equity of TerrAscend equivalent to 7.325mm TerrAscend common shares, which, based on the price of TerrAscend common shares from Friday’s close, would represent total consideration of approximately US$118.4mm. Such consideration is payable by TerrAscend in stages, subject to regulatory approvals by various local and state authorities in each of the markets where the assets and licenses are held, as well as certain customary closing conditions. The combined California and Nevada operations had 2018 revenues in excess of US$45mm.
“We believe The Apothecarium is the model for operational excellence and will set the tone for our U.S. cultivation and retail expansion, and we admire their philanthropic dedication and local community engagement. We look forward to working together with the members of the current team to bring the Apothecarium’s unique experience to more communities and improve patient access to quality cannabis products and services.”
