Canadian cannabis company TerrAscend Corp. TRSSF is expanding south of the border and establishing a presence in the U.S. through the acquisition of California-based retailer Apothecarium.
The value of the deal is $118.4 million; TerrAscend will pay $73.7 million in cash and voting shares equivalent to 7.325 million common shares.
In addition to gaining access to retail dispensary brand "The Apothecarium" and four dispensaries in California and Nevada, TerrAscend will also have a vertically integrated operation in Nevada that includes cultivation and edible manufacturing facilities.
Moreover, the acquisition includes Valhalla Confections, a provider of premium edble products.
TerrAscend said it will retain Apothecarium's entire team in their present roles following the acquisition.
Why It's Important
TerrAscend is a biopharmaceutical and wellness company that operates a number of synergistic businesses.
Aside from providing cannabis to the legal adult-use market in Canada and some U.S. states, the company also manufactures and distributes hemp-derived products through its Ascendant Laboratories subsidiary. Another subsidiary, Solace RX, a proposed drug preparation facility for novel pharmaceutical products.
In addition to allowing TerrAscend to expand outside Canada, the Apothecarium acquisition will open the company to some of the largest cannabis markets in the U.S.
In 2018, Apothecarium's combined operations in California and Nevada generated revenues of over $45 million.
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