TerrAscend Acquires Maryland Assets From Curaleaf In US$27.5 Million Deal

Curaleaf Holdings (CSE: CURA) apparently is looking to dispose assets. It was announced this morning that TerrAscend Corp (CSE: TER) has signed a definitive agreement with the firm to acquire HMS Health LLC and HMS LLC from the operator. Both of the assets are located in the state of Maryland.

TerrAscend will acquire the entire operation of HMS from Curaleaf for total consideration of US$27.5 million, of which $25 million is to be paid in cash. The remainder will be paid via a $2.5 million note bearing 5.0% interest, due in April 2022. Notably, it appears that Curaleaf has taken a loss on the assets, with the company believed to have paid a total of $32 million in cash and stock to acquire the operations in 2019.

Despite Curaleaf taking the loss however, TerrAscend has indicated that it currently expects the acquisition to be immediately accretive on an EBITDA basis.

HMS Health is involved in the cultivation and processing of medical cannabis products, operating in a 22,000 square foot facility in Frederick, Maryland. Dried flower and oil products are currently produced at the facility, with capacity stated to be available for the manufacturing of edible products once approved by the regulators. The capacity of the operation is said to be expanding significantly in the coming year, with no further specifics provided.

Given the delay in transferring licenses due to state approval, closing is anticipated in the first quarter of 2021, with the company said to retain “100% of the economics,” of the transaction through full ownership in HMS Health, and a master services agreement with HMS Processing. The transfer of HMS Processing is anticipated to close in April 2022.

TerrAscend Corp last traded at $9.61 on the CSE.


Information for this briefing was found via Sedar and TerrAscend Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Is Gold’s Bull Market About to Hit Junior Stocks? | Ken Armstrong – Westhaven Gold

Surge Battery Metals: The Nevada North Lithium PEA

Silver @ $36 & We’re Still 200M Oz Short | Paul Andre Huet – Americas Gold and Silver

Recommended

Goliath Resources Closes Out Funding Round With Total Gross Proceeds Of $27.1 Million

Silver47 Kickstarts 4,000 Metre Drill Campaign At Red Mountain Project

Related News

Curaleaf To Acquire Reef Dispensaries For US$286 Million

It may have been delayed by two years, but it appears that Tryke Companies, whom...

Monday, November 8, 2021, 07:49:53 AM

Curaleaf: Canaccord Raises Price Target To $23.50

Wednesday, Canaccord came out with their updated valuations for the large three multi-state operators. In...

Saturday, January 16, 2021, 01:43:00 PM

Curaleaf Breaks Trend, Begins Hiring Due To Pandemic Demands

It appears that Curaleaf Holdings (CSE: CURA) has broken the latest trend in the cannabis...

Tuesday, March 24, 2020, 08:52:04 AM

Curaleaf Sells Property to Free Up Cash

Curaleaf Holdings (CSE: CURA) announced this morning that it will be selling six of its...

Monday, August 26, 2019, 09:39:57 AM

US Cannabis: The Current Landscape

Welcome to the Deep Dive Video Essay Series. Today we are looking at US Cannabis....

Saturday, March 6, 2021, 09:00:00 AM