TerrAscend Corp. (“TerrAscend” or the “Company”) (CSE: TER) (OTCQX: TRSSF), a leading North American cannabis operator, today announced the completion of its previously announced acquisition of HMS Health, LLC and HMS Processing, LLC, (collectively “HMS”) from Curaleaf Holdings, Inc (“Curaleaf”) (CSE: CURA, OTCQX: CURLF) for a total consideration of $27.5 million, comprised of $25.0 million in cash prior to net adjustments and a $2.5 million note which bears 5.0% annual interest, due October 2022. The acquisition is expected to be immediately accretive to TerrAscend on an EBITDA basis.
Currently, HMS produces and sells dried flower and oil products for the wholesale medical cannabis market from an existing 22,000 square foot cultivation and processing facility. TerrAscend intends to introduce its portfolio of brands including Kind Tree, Ilera, and Prism, along with a suite of edibles products, upon regulatory approval. During the second half of 2021, the Company plans to significantly expand its capacity to cultivate high-quality indoor flower in the state.
“We are thrilled to officially enter Maryland, a limited license medical cannabis market with strong long-term growth potential that is adjacent to our core Northeast markets of Pennsylvania and New Jersey,” said Jason Wild, Executive Chairman of TerrAscend. “Our strong East Coast management team and corporate support functions are already in place and we expect to generate synergies by standardizing processes and introducing our portfolio of high-quality branded flower and manufactured products. We plan to scale our cultivation and processing capability to supply the underserved Maryland market while continuing to strategically evaluate opportunities to vertically integrate in the state.”