TerrAscend announces closing of acquisition of Herbiculture Inc.
by CM Staff
With the recent launch of adult-use sales in Maryland on July 1, 2023, the Company believes that Herbiculture is well positioned to achieve substantial sales and profit growth.
TORONTO — TerrAscend Corp., a North American cannabis company, announced the closing of its previously announced acquisition of Herbiculture Inc., a medical dispensary in Maryland. With this transaction, TerrAscend has reached the four dispensary cap in the state. With the recent launch of adult-use sales in Maryland on July 1, 2023, the Company believes that Herbiculture is well positioned to achieve substantial sales and profit growth. This transaction is expected to be immediately accretive to TerrAscend on an EBITDA and cashflow basis.
Located in an approximately 3,100 square foot location in Burtonsville, Herbiculture has a customer base and a net revenue run rate of approximately US$4.3 million. TerrAscend says they expect to achieve significant sales and margin improvement at this location with the recent launch of adult-use sales in the state and by offering a complete selection of its brands including Kind Tree, Gage, Cookies and Wana. With the close of the transaction, TerrAscend’s retail footprint increases to 38 dispensaries nationwide.
“With this transaction Herbiculture has become TerrAscend’s fourth dispensary in Maryland, which is a key step in our strategy to become a market leader in this state. We are very excited about this closing, as reaching the four-dispensary mark also coincides with the recent start of adult-use sales in Maryland. We expect Herbiculture and our other Maryland dispensaries to drive considerable revenue growth and profitability for TerrAscend going forward,” said Jason Wild, Executive Chairman of TerrAscend.
