North American cannabis firm TerrAscend will double its dispensary footprint in Pennsylvania via the acquisition of KCR Holdings.
The $63 million cash-and-stock transaction includes $36 million in stock, $20.25 million in cash, and a $6.75 million note. It is expected to close in the second quarter of 2021.
TerrAscend already owns 10% of KCR, — which operates the Keystone Canna Remedies chain of dispensaries in Bethlehem, Allentown, and Stroudsburg — meaning the $63 million purchase price implies an enterprise value of $70 million.
“This expanded retail footprint further solidifies our position as the leading branded cultivator and manufacturer in Pennsylvania,” TerrAscend executive chairman Jason Wild said via a news release.
Currently, Pennsylvania only permits the sale of medical marijuana. However, neighboring New Jersey and New York recently legalized adult-use cannabis, and many industry stakeholders expect Pennsylvania to follow suit.
The acquisition comes just one month after TerrAscend terminated CEO Jason Ackerman. The company plans to reach $290 million in net sales this year.
In addition to Pennsylvania, TerrAscend has operations in New Jersey and California. It also participates in the medical and adult-use cannabis markets in Canada.
Additional information is available in the release below.
TerrAscend Doubles Dispensary Footprint in