TerrAscend Corp. (CSE: TER) announced today that it has completed the acquisition of an additional 12.5% equity on New Jersey-licensed operator, TerrAscend NJ. The transaction is reported to be for total consideration of $50 million.
The acquisition involved an initial cash payment of $25 million and an additional $25 million payment in cash and shares payable on or before December 31, 2021. TerrAscend will be purchasing the additional equity from BWH NJ and Blue Marble Ventures.
“I am thrilled to increase our stake in TerrAscend New Jersey ahead of the commencement of adult-use sales,” said TerrAscend Executive Chairman Jason Wild.
Following the acquisition, the company now owns 87.5% of the issued and outstanding shares of the New Jersey operator. The sellers also agreed to give the company the option to purchase an additional 6.25% equity between April 1 and June 15, 2023.
Earlier this year, the North American cannabis operator completed its expansion project in New Jersey, bringing its total facility footprint in the state to 140,000 square feet. TerrAscend NJ has a permit to operate up to three alternative treatment centers; the first two have been up and running in the towns of Maplewood and Philipsburg while it expects to open the third one in Lodi before the year ends.
The company reported US$58.7 million in revenue and US$23.1 million in net loss for Q2 2021.
TerrAscend last traded at $9.43 on the CSE.
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