Canadian-based marijuana grower TerrAscend Corp (CSE: TER) announced today that it is planning to expand its operations into the US market, along with evaluating potential acquisitions and mergers in states that have legalized cannabis consumption. The move is a part of a broader strategy to become a leading multi-national operator in both Canada and the United States.
To facilitate this transition, TerrAscend announced several agreements with other major marijuana-based companies, including Canopy Growth Corporation (TSX: WEED) (NYSE: CGC), Canopy Rivers Corporation (TSXV: RIV) as well a JW Asset Management to help aid a reorganization that will raise funds, issue shares, as well as waive current contractual obligations restricting TerrAscend from operating in the United States.
“We see a tremendous opportunity for TerrAscend shareholders to benefit from an early-mover strategy as we grow our business organically and through disciplined acquisitions in those states and countries that have legalized cannabis,” said TerrAscend CEO and President Michael Nashat according to Newswire. “Thanks to the ongoing collective support from Canopy Growth, Canopy Rivers, and JW Asset Management, our proposed capital reorganization will position TerrAscend to pursue value-generating growth on a global scale.”
The planned reorganization will be subject to Court approval as well as TerrAscend’s shareholders. Among other things, the proposed plan seeks to comply with securities relegation’s in the United States, along with issuing common shares to the market.
The proposed plan will be presented at a special meeting of shareholders in November 2018, where at least two-thirds of shareholder votes are needed for it to go through. At the moment, the company does not engage in any U.S. cannabis related activities as per the Canadian Securities Administrators Staff Notice 51-523.
“We are supportive of this reorganization as it positions the Canopy portfolio of companies with conditional future exposure, that is compliant with the policies of our stock exchanges, to a team with a track record of success as they embark to compete in what is anticipated to be the largest cannabis economy in the world,” added Bruce Linton, Co-CEO of Canopy Growth and CEO of Canopy Rivers Inc. “We are thrilled to remain affiliated and aligned with the TerrAscend team as the Company continues to build value for all shareholders.”
Canopy Rivers owns 11,285,456 common shares at the moment, along with purchase warrants entitling them to another 9.5 million common shares at the price of $1.10 US each.
Most cannabis analysts agree that the U.S. market is still largely untapped, with only 9 states along with the District of Columbia legalizing the consumption of marijuana.
As recreational and medical use continues to gain mainstream traction, many more Canadian-based companies leading the industry will jump on the opportunity to expand southwards across the border.
TerrAscend Corp. Company Profile
TerrAscend is a Canadian based company focused on creating and delivering quality cannabis products and services that meet the evolving needs of patients.
The Company provides support to patients through its subsidiaries, Solace Health Inc., a Licensed Producer of medical cannabis, Solace Health Network Inc., a clinical support program and education platform led by health care professionals, and SolaceRx, a proposed Drug Preparation Premises for the compounding of non-cannabis formulations for a variety of institutions. – TerrAscend