Canada’s TerrAscend appears to snap up US marijuana firm Ilera for up to $225 million

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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.

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