TerrAscend Adds Three Pennsylvania DIspensaries With $63 Million Additional Investment – New Cannabis Ventures – New Cannabis Ventures

TerrAscend Doubles Dispensary Footprint in Pennsylvania Through Acquisition of Keystone Canna Remedies Acquires Three Operating Dispensaries in Northeast Pennsylvania Purchase price represents a mid-single digit multiple of KCR’s expected 2021 EBITDA

NEW YORK and TORONTO, April 20, 2021 /CNW/ – TerrAscend Corp. (“TerrAscend” or the “Company”) (CSE:TER) (OTCQX: TRSSF), a leading North American cannabis operator, today announced it has entered into a definitive agreement to acquire GuadCo, LLC and KCR Holdings LLC (collectively “KCR”) for an implied enterprise value of US$70 million (the “transaction”). Upon close, the transaction will add three retail dispensaries located in Bethlehem, Allentown and Stroudsburg to complement the Company’s existing retail footprint in Southeastern Pennsylvania.

As an operator of three well managed dispensaries in the Northeast region of Pennsylvania, KCR expands TerrAscend’s retail footprint, diversifies the Company’s customer base and enhances margins through deeper vertical integration. The transaction will be immediately accretive upon closing, which is expected to occur in the second quarter, subject to customary regulatory approvals.

The Pennsylvania medical cannabis market is a key focus for the Company. This transaction doubles our owned footprint to six dispensaries in the state and provides patients in Pennsylvania’s Northeast region access to TerrAscend’s outstanding products, service, and support. This expanded retail footprint further solidifies our position as the leading branded cultivator and manufacturer in Pennsylvania.

Jason Wild, Executive Chairman of TerrAscend

Transaction Details

TerrAscend currently owns 10% of KCR and will acquire the remaining 90% of the equity for total consideration of $63 million, comprised of $36 million in stock, $20.25 million in cash and a $6.75 million note. The purchase price is expected to represent a mid-single digit multiple of KCR’s 2021 EBITDA.

About TerrAscend

TerrAscend is a leading

Read More Here...

Share on facebook
Share on twitter
Share on reddit
Share on pinterest
Share on email

Leave a comment

Your email address will not be published. Required fields are marked *