Canadian cannabis company TerrAscend Corp (CNSX: TER) announced today that they had signed an acquisition agreement to purchase an award-winning retail dispensary brand called The Apothecarium. The agreement is estimated at $118.4 million and will grant TerrAscend significant exposure to California and Nevada, where the Apothecarium operates.
Currently, the retail brand has four retail dispensaries spread across the two states. TerrAscend agreed to pay $73.7 million in equity in an arrangement that’s payable in stages pending regulatory approval. Back in 2018, the company had combined revenue in both states of $45 million, and most experts expect that figure will drastically increase over the coming years.
“We couldn’t be more excited to come together with TerrAscend. TerrAscend’s focus on health and science is a great fit with our focus on patient education and serving the needs of the community,” said Apothecarium CEO Ryan Hudson. “We chose to work with TerrAscend because they understand the essence of the Apothecarium experience and have the means necessary to bring it to a national audience. Additionally, TerrAscend recognized the value of all our team members continuing in their current roles. We want to continue doing what we do best and they want the same thing.”
Matthew Johnson, TerrAscend’s President, added that they felt The Apothecarium represented one of the best retail brands in California, with a strong history of “operational excellence” as well as admiring their “philanthropic dedication and local community engagement.” The retail brand will retain most of their management team as they proceed to work alongside TerrAscend’s executive in the future.
Besides providing cannabis in the legal adult-use market in the U.S. and Canada, TerrAscend also distributes hemp-derived products through its subsidiaries. They also have proposed a drug preparation facility for new biopharmaceutical products. In response to the announcement, TerrAscend’s stock price increase by a modest 2.4 percent, but well above what general market indices such as the Dow Jones performed today.
TerrAscend Company Profile
TerrAscend is a biopharmaceutical and wellness company that is committed to quality products, brands and services for the global cannabinoid market. The Company’s wholly-owned subsidiary, TerrAscend Canada Inc., is a licensed producer of cannabis that provides medical cannabis, education and support to patients through Solace Health, its online sales and support platform. The Company also participates in the legal adult-use market in Canada and in US states where cannabis has been legalized for therapeutic or adult-use. TerrAscend operates a number of synergistic businesses, including Arise Bioscience Inc., a manufacturer and distributor of hemp-derived products, Ascendant Laboratories Inc., a biotechnology and licensing company committed to the continuous improvement of cannabinoid expressing plants, and Solace RX Inc., a proposed drug preparation premises focused on the manufacturing of novel pharmaceutical products. –TerrAscend
The Apothecarium Company Profile
The Apothecarium is recognized as one of the nation’s premier cannabis dispensaries, with an emphasis on education via in-depth one-on-one consultations from highly trained cannabis consultants. The company was founded by three first cousins and two family friends in 2011. The dispensaries are known for providing free cannabis education events that are open to the public. –Apothecarium