TerrAscend Corp Acquired New Property in Hagerstown, Maryland, Worth Almost $3 Million to Increase Cultivation
TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF), a leading North American vertically-integrated cannabis company, announced that a wholly-owned subsidiary of the company has acquired a commercial property located at 273 East Memorial Boulevard in Hagerstown, Maryland.
The property was purchased from GB&J’s LLC, at a purchase price of approximately US$ 2.8 million plus some additional costs and expenses.
TerrAscend currently manages a 22,000 square-foot cultivation and processing facility in the city of Frederick in Maryland and manufactures and sells dried flower and cannabis oil products for the Maryland wholesale medical cannabis market.
It has already got regulatory approval for relocating its cultivation operations to the 156,000 square-foot facility in the city of Hagerstown. The company hopes to commence operations at the new facility by the first quarter of 2022.
TerrAscend is one of the leading, vertically-integrated North American cannabis companies, and operates in the states of Pennsylvania, New Jersey, and California. The company has its cultivation and processing facilities in Maryland while its licensed production takes place in Canada.
It runs an award-winning chain of Apothecarium dispensaries that produces high-quality cannabis and offers a range of products for those who rely on cannabis either for medicinal purposes or for recreational purposes.
The company’s well-known brands besides Apothecarium are Ilera Healthcare, Kind Tree, Prism, State Flower, Valhalla Confections, and Arise Bioscience Inc. TerrAscend trades on the CSE under the stock symbol TER and the OTCQX under the stock symbol TRSSF.
About Property Acquisition
Jason Wild, Executive Chairman of TerrAscend, said that since adult-use legislation was under review in the state, increasing the cultivation and processing capacity at the company’s Maryland facility would help the company to serve the market better.
He added that as the company pursued its vertical-integration opportunities in the state, it would also increase consumer access to the company’s brands like Kind Tree, Ilera, and Prism, and other quality cannabis products.
The Acquisition of the Hagerstown facility comes under the category ‘related-party transaction’, where parties to a deal already have an existing business connection or shared interest, pursuant to Multilateral Instrument: 61-101 – Protection of Minority Security Holders in Special Transactions.
This is so because of the ownership and control of Jason Wild, Executive Chairman and Director of TerrAscend, through funds managed by JW Asset Management. In addition, other members of the seller (GB&J’s LLC) include former directors and officers of the Company who also received portions of the proceeds of the acquisition.
TerrAscend is hoping to get exemption from the formal valuation and the minority shareholder approval requirements on the basis that no securities of the company are listed on the Toronto Stock Exchange or any other specified market.
Also, the fair market value of the consideration paid under the Acquisition does not exceed 25% of the market capitalization of the company.