TerrAscend, the Toronto-based cannabis enterprise, continues to broaden its reach in Maryland. This move comes as Maryland prepares to authorize adult-use cannabis sales. TerrAscend’s strategy aligns with this imminent development, bolstering its presence in the promising market.
The company, with operations spanning Pennsylvania, New Jersey, Michigan, and California, recently inked a definitive agreement on June 26 to purchase Hempaid LLC, trading as Blue Ridge Wellness. Blue Ridge Wellness is a medical cannabis dispensary situated just outside Baltimore in Parkville, Maryland.
Valued at US$6.75 million, this deal incorporates $3 million in cash, with the remaining value converted into a seller’s note. Consequently, TerrAscend’s presence in Maryland will grow to include three dispensaries, aligning with the state’s launch of adult-use sales on July 1. It’s worth noting that the state regulations limit any single company to a maximum of four dispensaries.
The agreement with Blue Ridge Wellness follows TerrAscend’s June 7 announcement of its plan to acquire Derby 1 LCC, also known as Peninsula Alternative Health, situated in the southern region of Maryland in Salisbury. This acquisition, which received regulatory endorsement, is valued at a total of $22.1 million, inclusive of $5.1 million in cash.
“The acquisition of Blue Ridge marks our third dispensary in Maryland, fortifying our position ahead of the adult-use sales launch,” stated TerrAscend Executive Chairman Jason Wild in an official press release. “We anticipate that the combined power of Blue Ridge with our other Maryland dispensaries will significantly boost TerrAscend’s revenue growth and profitability in Maryland. This is expected even before our planned relocation to a prime spot later this year. We’re keen on further expanding our portfolio by acquiring one more dispensary to meet the Maryland cap.”
According to TerrAscend, the Blue Ridge acquisition is expected to enhance the company’s EBITDA and cashflow. The current annual revenue of the medical dispensary stands at approximately $4.3 million.
Once the transaction concludes, TerrAscend plans to move the Blue Ridge dispensary to a larger, already secured location near the White Marsh Mall. This popular retail center on Baltimore’s outskirts will be home to the nearly 3,900 square-foot dispensary. TerrAscend aims to complete this move within the next six months, bringing their total number of dispensaries across the nation to 36.
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