TerrAscend Acquires Three Pennsylvania Dispensaries For US$63 Million

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.”

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.

Video Articles

Are We Entering a New 10-Year Silver Supercycle? | Keith Neumeyer – First Majestic Silver

Why the Biggest Players Are Desperate for New Gold & Copper, And Fast | Rudi Fronk – Seabridge

Why the World Faces a Uranium Supply Shock, Sooner Than You Think | Scott Melbye – Uranium Royalty

Recommended

ESGold Sees ANT Survey Reveal Vertically Continuous System To 1,200 Metres Depth

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Related News

Cannabis Companies Have Begun Moving To Self-Insure

There is a common expression in the cannabis industry that “everything is more expensive.” Even...

Sunday, October 3, 2021, 09:00:00 AM

TerrAscend Hits US$49.7 Million In Revenue, US$16.0 Million Net Loss In Q1 2022

TerrAscend Corp. (CSE: TER) reported late Thursday its Q1 2022 financial results, which saw the...

Friday, May 13, 2022, 10:14:00 AM

Canopy Growth Loans TerrAscend C$80.5 Million

Canopy Growth Corp (TSX: WEED) (NYSE: CGC) announced this morning that it has made a...

Wednesday, March 11, 2020, 08:39:07 AM

TerrAscend Takes 12.5% More Equity On New Jersey License For $50 Million

TerrAscend Corp. (CSE: TER) announced today that it has completed the acquisition of an additional...

Friday, August 20, 2021, 11:44:00 AM

TerrAscend Completes 80,000 Square Foot Expansion At New Jersey Operations

TerrAscend Corp (CSE: TER) has completed its expansion project within the state of New Jersey....

Monday, January 11, 2021, 07:51:20 AM