TORONTO, Nov. 6, 2024 – PRESS RELEASE – TerrAscend Corp., a leading North American cannabis company, announced the signing of a definitive agreement to acquire the assets of Ratio Cannabis LLC , a well-situated dispensary in Goshen Township, Ohio.
Upon closing, this acquisition will be TerrAscend’s initial entry into Ohio, the company’s sixth state. Upon closing, total consideration to the sellers of $10.3 million will be comprised of $5 million in cash, $1.32 million in company common shares and a seller’s note for $3.98 million bearing 6% interest with a two-year maturity. The transaction, which is expected to be immediately accretive on an EBITDA and cashflow basis, and is subject to customary closing conditions, including regulatory approval from the Ohio Division of Cannabis Control (DCC).
“Entering Ohio and expansion in the Midwest has long been a priority for us,” TerrAscend Executive Chairman Jason Wild said. “With the acquisition of this well-situated and profitable dispensary, we will enter our sixth U.S. state through an accretive transaction at an attractive price. This acquisition is a great first step to becoming a leader in this emerging adult-use market.”
Ratio Cannabis is a high-performing dispensary in Ohio which is well-situated in Goshen Township with no competition within a 20-mile radius. TerrAscend expects to achieve significant revenue growth at this location as the state expands its implementation of adult-use sales and as regulation for additional product categories are permitted. This acquisition will increase TerrAscend’s U.S. retail footprint to 38 dispensaries across six states. The company intends to become a market leader in Ohio through the acquisition of additional dispensaries in the future.
Under the terms of the agreement, Ohio Dispensing 1 LLC, a subsidiary of TerrAscend USA, has the option to purchase, subject to certain conditions, the assets of Ratio Cannabis. The closing of the transaction is subject to standard closing conditions, including exercise of the option and regulatory approval from the DCC.
Strike Partners acted as the exclusive financial adviser to Ratio Cannabis in connection with the transaction.
