- Expands licensed cannabis footprint to four U.S. states, in addition to global reach into Canada and Europe.
- Ilera’s current revenue run-rate is over US$43 million1, up from total sales in 2018 of less than US$8 million1.
- TerrAscend’s revenue guidance in excess of C$141 million for 2019 reaffirmed2.
TORONTO, Sept. 17, 2019 /PRNewswire/ – TerrAscend Corp. (CSE: TER;OTCQX: TRSSF) (“TerrAscend” or “the Company”), the first and only global cannabis company licensed for sales in Canada, the US, and the EU, today announced it has closed on its previously announced acquisition of Pennsylvania-based Ilera Healthcare, one of five permitted vertically-integrated cannabis cultivator, processor, and dispensary operators in the state. With the completion of this transaction, TerrAscend’s licensed cannabis footprint expands to four U.S. states, in addition to its global reach into Canada and Europe.
As one of only 5 holders of Super Licenses in a limited license state with approximately 13 million people, Ilera is an ideal partner for TerrAscend to enter the Pennsylvania market with.
Matthew Johnson, President of TerrAscend Corp., and TerrAscend USA, Inc
We welcome Greg and the rest of the Ilera team to the TerrAscend family, and we look forward to partnering together as we continue to build the leading North American Operator (NAO) in the cannabis space.
Greg Rochlin, CEO of Ilera, said, “By combining forces with TerrAscend, we see clear opportunities ahead for our stakeholders, employees and patients. We look forward to accelerating the growth of Ilera’s brands and formulations by leveraging TerrAscend’s platform in other markets. I can’t wait to introduce our wholesale customers and patients to the California-born Valhalla and State Flower brands, as well as Haven Street, a leading premium Canadian brand.”
We know that Ilera’s original mission to deliver consistent premium cannabis medicines to patients throughout Pennsylvania will be carried on by TerrAscend, who shares our culture, and above all, our commitment to the highest standards of quality and patient service.
Osagie Imasogie, Chairman of the Board for Ilera Healthcare
Ilera currently operates a retail dispensary in Plymouth Meeting, PA, with plans to open two additional dispensary sites in the Philadelphia area within the next six months. The operations include a 67,000 square foot site for cultivation and processing in Waterfall, PA with planned expansion to over 120,000 square feet in 2020. In addition to selling its products in its own dispensary, Ilera distributes its dried flower, concentrates, tinctures, and topicals to over 60 dispensaries throughout Pennsylvania. Ilera’s current revenue run-rate is over US$43 million1, up from total sales in 2018 of less than US$8 million1. For more information about Ilera Healthcare, visit http://www.ilerahealthcare.com.
The Pennsylvania medical marijuana program has more than 180,000 registered patients and 20,000 registered caregivers as of August 2019, and covers 23 qualifying medical conditions including anxiety disorders, cancer, and opioid use disorder3. Those seeking more information about Pennsylvania’s medical marijuana program can visit www.medicalmarijuana.pa.gov.
Transaction Details: The transaction closed at previously disclosed terms.
TerrAscend reiterates its current 2019 guidance of revenue in excess of C$141 million, which includes contribution from the Ilera transaction and pending disclosed transactions, as previously announced on August 22, 2019.
About TerrAscend
TerrAscend provides quality products, brands, and services to the global cannabinoid market. As the first North American Operator (NAO) with scale operations in both Canada and the US, the Company participates in the medical and legal adult use market across Canada and in several US states where cannabis has been legalized for therapeutic or adult use. Additionally, TerrAscend will soon be the first and only cannabis company with sales in the US, Canada, and Europe as it has received EU GMP certification for its manufacturing facility in Mississauga, Ontario. TerrAscend operates a number of synergistic businesses, including The Apothecarium, an award-winning cannabis dispensary with several retail locations in California and Nevada; Arise Bioscience Inc., a manufacturer and distributor of hemp-derived products; Ilera Healthcare, Pennsylvania’s premier medical marijuana cultivator, processor and dispenser; Ascendant Laboratories Inc., a biotechnology and licensing company committed to the continuous improvement of cannabinoid expressing plants; Solace RX Inc., a proposed Drug Preparation Premises (DPP) focused on the development of novel formulations and delivery forms; and Valhalla Confections, a manufacturer of premium cannabis-infused edibles. For more information, visit https://www.terrascend.com.
Financial Outlook
This press release contains a financial outlook within the meaning of applicable Canadian securities laws. The financial outlook has been prepared by management of TerrAscend to provide an outlook for calendar year 2019 and may not be appropriate for any other purpose. The financial outlook has been prepared based on a number of assumptions including the assumptions discussed under the heading “Forward Looking Information” above and assumptions with respect to production, pricing, and demand, and that the acquisition of the Nevada operations of The Apothecarium will be completed late in the third quarter of 2019. The actual results of TerrAscend’s operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. TerrAscend and its management believe that the financial outlook has been prepared on a reasonable basis. However, because this information is highly subjective and subject to numerous risks, including the risks discussed under the heading “Forward Looking Information” above, it should not be relied on as necessarily indicative of future results. Except as required by applicable Canadian securities laws, TerrAscend undertakes no obligation to update the financial outlook.
TerrAscend undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of TerrAscend, its securities, or financial or operating results (as applicable).
1 Based on unaudited financial statements prepared in accordance with U.S. GAAP.
2 Revenue guidance for 2019 as previously announced on August 22, 2019, exclusive of expenses.
3 Sourced from Commonwealth of Pennsylvania Department of Health.
