TerrAscend, an Ontario, Canada-primarily based vertically integrated cannabis firm, agreed to obtain Ilera Healthcare, a Pennsylvania-primarily based marijuana cultivator, processor and dispensary operator for up to $225 million (CA$297 million).
The total price of the transaction will rely on Ilera reaching specific income and profitability targets.
For now, TerrAscend is set to spend $25 million in money and $25 million in stock with an extra $175 million to be paid in money based on the Ilera targets getting met.
Here’s some details surrounding the deal:
- Ilera operates a dispensary in Plymouth Meeting, Pennsylvania, with plans to open two a lot more dispensaries in the state by the finish of this year.
- The firm also has a cultivation, extraction and processing facility in Waterfall in the state and distributes its goods to 50 of the state’s 52 dispensaries.
- The transaction is anticipated to close in the fourth quarter of 2019.
TerrAscend, which trades on the Canadian Securities Exchange as TER, reported revenues of CA$14.six million ($10.95 million) for the quarter ended March 31, 2019, with a net loss of CA$11.two million.
Get access to a lot more in-depth market place evaluation, premium options on cannabis investing trends and month-to-month executive webcasts with an Investor Intelligence subscription.