TerrAscend Corp. (“TerrAscend” or the “Company”) (CSE: TER) (OTCQX: TRSSF), a leading North American cannabis operator, today announced that on June 26, 2023 it entered into a definitive agreement to acquire Hempaid, LLC (d/b/a “Blue Ridge Wellness”), a medical dispensary in Maryland. The transaction expands TerrAscend’s footprint to three dispensaries in the state. Blue Ridge Wellness is well positioned to achieve substantial sales growth following the commencement of adult-use sales in Maryland, which is set to begin on July 1, 2023.
Under the terms of the agreement, TerrAscend will acquire Blue Ridge Wellness for total consideration of US$6.75 million (the “Transaction”), including US$3.0 million in cash, with the remainder in a seller’s note. The acquisition, which is expected to be accretive to TerrAscend on an EBITDA and cashflow basis, is subject to customary closing conditions, including regulatory approval. Following the close of the Transaction, TerrAscend’s retail footprint will increase to 36 dispensaries nationwide.
Blue Ridge Wellness, a medical dispensary located in Parkville, Maryland, is currently on a revenue run rate of approximately US$4.3 million. TerrAscend expects to achieve significant sales and margin improvement at this location with the launch of adult-use and by offering a complete selection of its high-quality brands including Kind Tree, Gage, Cookies and Wana. The Company has plans to relocate the Blue Ridge dispensary to a new, larger storefront it has already secured. This 3,900 square foot, prime location is conveniently located near the White Marsh Mall, a high-traffic retail center. The Company expects to complete the relocation of Blue Ridge in the next six months.
“Upon closing, Blue Ridge will be our third dispensary in Maryland ahead of the imminent launch of adult-use sales. We anticipate that Blue Ridge, combined with our other Maryland dispensaries, will drive substantial revenue growth and profitability for TerrAscend in Maryland, even prior to our scheduled move to a prime location later this year. We are focused on acquiring an additional dispensary to reach the four-dispensary cap in Maryland,” said Jason Wild, Executive Chairman of TerrAscend.
