TerrAscend is continuing to make deals to expand its retail footprint in Maryland, just days before the state launches adult-use cannabis sales.
The Toronto-based company, which also runs vertically integrated operations in Pennsylvania, New Jersey, Michigan and California, entered a definitive agreement on June 26 to acquire Hempaid LLC (doing business as Blue Ridge Wellness), a medical cannabis dispensary in Parkville, Md., just outside Baltimore.
The US$6.75-million agreement, including $3 million in cash and the remainder in a seller’s note, will expand TerrAscend’s footprint to three dispensaries in the state, where adult-use sales are set to begin July 1. The state cap is four dispensaries for any given company.
The Blue Ridge Wellness deal comes on the heels of TerrAscend’s June 7 announcement to acquire Derby 1 LCC (d/b/a Peninsula Alternative Health) in Salisbury, Md., located in the southern part of the state. That deal, which received regulatory approval, represents a total consideration of $22.1 million, including $5.1 million in cash.
“Upon closing, Blue Ridge will be our third dispensary in Maryland ahead of the imminent launch of adult-use sales,” TerrAscend Executive Chairman Jason Wild said in a press release. “We anticipate that Blue Ridge, combined with our other Maryland dispensaries, will drive substantial revenue growth and profitability for TerrAscend in Maryland, even prior to our scheduled move to a prime location later this year. We are focused on acquiring an additional dispensary to reach the four-dispensary cap in Maryland.”
The company expects the Blue Ridge acquisition to be accretive on an EBITDA and cashflow basis. The medical dispensary is currently on a revenue run rate of approximately $4.3 million, according to TerrAscend.
After the transaction closes, TerrAscend plans to relocate the Blue Ridge dispensary to a new, larger storefront (roughly 3,900 square feet) the company has already secured near the White Marsh Mall—a high-traffic retail center on the outskirts of Baltimore. The company expects to complete this relocation in the next six months, bringing its retail footprint to 36 dispensaries nationwide.
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