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Monday, May 20, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Cannabis

TerrAscend acquires Maryland dispensary for US$22.1M

The Peninsula Alternative Health retail outlet is expected to generate net revenue of US$14M this year

TerrAscend acquires Maryland dispensary for US$22.1M
Cannabis concentrate. Image via Peninsula Alternative Health, Salisbury, Maryland

Toronto’s TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) has strategically expanded its retail footprint in Maryland by purchasing a large dispensary there prior to the state’s adult-use sales commencing in July.

On Thursday, the company announced that it had purchased Salisbury’s Peninsula Alternative Health for US$22.1 million, an 8,500-square-foot dispensary with no competitors in a 25-mile radius.

TerrAcend says the dispensary is one of the top-performing cannabis retail outlets in the state, which is expected to generate approximately US$14 million in net revenue this year. This will be the second dispensary in Maryland owned by TerrAscend and the 35th nationwide.

The company expects to generate significant sales from the move and will supply products from its Kind Tree, Wana, Gage Cannabis and Cookies brands at the location.

“We expect Peninsula to quickly become one of our highest-performing dispensaries nationwide. With less than 30 days until the launch of adult use in Maryland, we are focused on additional acquisitions and reaching the four-dispensary cap as our northeast business unit will soon be operating in Maryland under the same successful business model we built in New Jersey,” said TerrAscend’s Executive Chairman Jason Wild.

Read more: First cannabis-friendly concert in Illinois kicks off this September

Read more: Fire & Flower files for creditor protection due to high losses and competition

TerrAscend also announced in May that it had sold its head office in Mississauga for $19.7 million, with the funds being used to pay off the company’s existing debt.

The cannabis supplier applied to list its common shares on the Toronto Stock Exchange in mid-March, which would establish TerrAscend as the first American multi-state operator to gain membership on the exchange.

On April 20, the company announced that it had filed its preliminary proxy statement with the United States Securities and Exchange Commission detailing its internal reorganization plan to meet the criteria needed for listing on the TSX and that its shareholders would be voting on the proposed listing on June 22.

The company has hired the law firm Cassels Brock & Blackwell LLP to serve as a legal and strategic advisor while going through its reorganization and TSX application process.

TerrAcend shares rose by 0.46 per cent Thursday to trade at $2.17 on the Canadian Securities Exchange.

 

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