North American cannabis operator TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) has finishing acquiring the dispensary chain operator Pinnacle and extended its store footprint in Michigan.
On Wednesday, the company announced it completed the acquisition of KISA Enterprises MI, LLC which does business as Pinnacle for US$28.5 million. The agreement was previously announced in April and the purchase price was a mix of cash, two promissory notes totalling US$10 million and US$8.5 million stock at closing.
The acquisition includes six pot shop licences, five of which are currently operational and located in the cities of Buchanan, Camden, Edmore, Addison and Morenci. This expands the company’s store footprint to 17 in Michigan and 32 in the United States.
TerrAscend plans to rebrand each of the dispensaries under its Gage or Cookies brands where each dispensary will carry the entire selection of Cookies and Gage including their brands Lemmonnade, Runtz, PowerzzzUp, Minntz and Grandiflora.
Read more: TerrAscend to offer immersive Cookies experience at its New Jersey pot shops
Read more: TerrAscend to sell its concentrates in New Jersey
“We are excited to strengthen our Michigan footprint with the acquisition of Pinnacle,” TerrAscend executive chairman Jason Wild said.
“This acquisition strategically expands our presence along Michigan’s border, to areas that previously had limited access to Gage and Cookies branded retail locations and products.”
“We look forward to introducing our premier brands to new customers and solidifying our position as a top-tier retailer in the state while continuing to scale and improve margins and profitability.”
Last month, the company partnered with San Francisco-based Cookies in opening a new “immersive” experience offering exclusive products and a bud bar at its pot shops in New Jersey.
Company stock went up Wednesday by 4.61 per cent to $2.27 on the Canadian Securities Exchange.
