TerrAscend to Acquire Maryland Dispensary for $22 Million … – Cannabis Business Times

TORONTO, June 8, 2023 – PRESS RELEASE – TerrAscend Corp., a leading North American cannabis operator, announced that on June 7, 2023, it entered into a definitive agreement to acquire Derby 1 LLC (doing business as “Peninsula Alternative Health”), a medical dispensary in Maryland. The transaction will add a second dispensary to the TerrAscend’s Maryland footprint in advance of adult-use sales, which will begin on July 1, 2023.

Under the terms of the agreement, TerrAscend will acquire Peninsula Alternative Health (Peninsula) for total consideration of US$22.1 million, including US$1.5 million in cash, with the remainder in a combination of existing debt, a seller’s note, and stock. The transaction, which is expected to be immediately accretive to TerrAscend on an EBITDA and cashflow basis, is subject to customary closing conditions, including regulatory approval.

Peninsula is one of the highest performing medical dispensaries in Maryland with a net revenue run rate in 2023 of approximately US$14 million. Strategically located near the Delaware border in Salisbury, Md., this 8,500-square-foot dispensary has no direct competitor within a 25-mile radius. TerrAscend expects to achieve significant sales and margin improvement by supplying a complete selection of its high-quality brands, including Kind Tree, Gage, Cookies and Wana. Following the close

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