TerrAscend Corp. TRSSF TER entered into a definitive agreement on June 29, 2023 to acquire Herbiculture Inc. (d/b/a “Herbiculture”), a medical dispensary in Maryland. With this transaction, TerrAscend will reach the four dispensary cap in the state. With the upcoming launch of adult-use on July 1, 2023, the company believes that Herbiculture is well positioned to achieve substantial sales and profit growth.
Under the terms of the agreement, TerrAscend will acquire Herbiculture for total consideration of $8.25 million, composed of $3.0 million in cash, with the remainder in a seller’s note. The transaction, which is expected to be immediately accretive to TerrAscend on an EBITDA and cashflow basis, has already been approved by the Maryland Cannabis Administration and is expected to close in the coming days.
Located in an approximately 3,100 square foot location in Burtonsville, Herbiculture has a net revenue run rate of approximately $4.3 million. TerrAscend expects to achieve significant sales and margin improvement at this location with the launch of adult-use and by offering a complete selection of its high-quality brands including Kind Tree, Gage, Cookies and Wana. TerrAscend’s retail footprint will increase to 37 dispensaries nationwide, once closed.
“Adding a fourth dispensary in Maryland is an important step in our strategy to become a market leader in the state. We anticipate that Herbiculture, combined with our other Maryland dispensaries, will drive substantial revenue growth and profitability,” stated Jason Wild, executive chairman of TerrAscend. “We look forward to serving more consumers in Maryland with the start of adult-use sales in this state, and intend to utilize the same, successful strategy and business model that we built in New Jersey.”
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Photo by Tim Foster on Unsplash .
