Cross-border marijuana firm TerrAscend Corp. on Friday introduced an settlement to purchase HMS, a Maryland medical hashish processor and cultivator, from Curaleaf Holdings for $27.5 million.
The price ticket contains $25 million in money plus a $2.5 million be aware at 5% annual curiosity, and it’s due to Curaleaf in April 2022.
HMS operates a 22,000-square-foot cultivation and processing facility in Frederick, Maryland, that at present produces medical marijuana flower and oil “and has the capability to produce edibles upon regulatory approval,” in accordance to a TerrAscend information launch.
TerrAscend stated it plans to develop the ability.
“This acquisition enables TerrAscend to expand its footprint into another robust limited license medical cannabis market with strong, long-term growth potential,” TerrAscend Executive Chair and CEO Jason Ackerman stated within the launch.
“By combining HMS with our industry-leading scaled operations in the adjacent states of Pennsylvania and New Jersey, we will leverage our strong management team and corporate support functions to drive economies of scale.”
The deal is topic to regulatory approval.
TerrAscend, which relies in each New York and Toronto, lately introduced preliminary third-quarter monetary statements signaling income development.
Massachusetts-based Curaleaf stated the sale of HMS will enable it to proceed with its proposed acquisition of Maryland Compassionate Care and Wellness, which has a 55,000-square-foot cultivation and processing facility in Taneytown, Maryland, and the Herbology dispensary in Gaithersburg.
Also on Friday, Curaleaf introduced the sale of Curaleaf Maryland, holder of a processing license in Cumberland for $4 million.
The firm didn’t reveal the client in that transaction.
“The asset sales we announce today will allow us to optimize Curaleaf’s vertically integrated presence in Maryland within the regulation which limits operators to a single grow and single processor,” Curaleaf CEO Joseph Lusardi stated in a information launch.