TerrAscend Corp (CSE: TER) this morning continued its strategy of expansion by acquisition. The company this morning announced that it will be acquiring three operating dispensaries within the state of Pennsylvania in a transaction valued at US$63 million.
The transaction will see the company acquire that of GuadCo, LLC, as well as KCR Holdings, whom is collectively known as KCR, or Keystone Canna Remedies. The arrangement is based on an implied enterprise value of US$70 million for the assets, with TerAscend already owning a 10% stake in the asset. The company currently operates three dispensaries located in Northeastern Pennsylvania.
Consideration for the remaining 90% stake in the firm will see TerrAscend issue $36 million worth of stock to the vendors, as well as $20.25 million in cash. Finally, a $6.75 million note will also be issued to the vendors for the final portion of the consideration. The total purchase price is said to represent a “mid single digit multiple of KCR’s 2021 EBITDA.”
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The transaction is expected to close in the second quarter of 2021.
TerrAscend Corp last traded at $12.75 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.
