TerrAscend Enters U.S. Hemp Market with $13 Million Acquisition
December 24, 2018 at 9:51 am Published by NCV Newswire
TORONTO, Dec. 24, 2018 /PRNewswire/ – TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) (“TerrAscend”) today announced the signing of a definitive agreement (the “Agreement”) to acquire substantially all of the assets of Grander Distribution, LLC (“Grander” or the “Seller”). Grander is an industry leader in the production and distribution of innovative hemp-derived wellness products.
Their whole-plant hemp extract products are made in the USA and are available for sale in ~10,000 retail locations worldwide. Grander expects 2018 sales to exceed US$10,000,000 with the most recent one month run rate of over US$14,000,000 on an annualized basis. The US$13,000,000 purchase price is an equal combination of cash and stock with the potential for additional consideration of up to US$10,000,000 based on revenue targets of US$35,000,000 in 2019 and US$50,000,000 in 2020. The transaction is expected to close by January 15, 2019, upon completion of standard closing requirements.
"We are thrilled to welcome the Grander team and look forward to leveraging their expansive distribution and branding expertise as we complete the first acquisition of our US strategy. In addition to their seasoned sales force, Grander has a proven track-record of driving the development, manufacturing and processing of innovative hemp-derived cannabinoid products."
Matthew Johnson, President TerrAscend Corp., and TerrAscend USA, Inc. “With the passing of the 2018 US Farm Bill, and the closing of this transaction, TerrAscend will be well positioned to take advantage of the substantial hemp-derived product opportunity.”
"We couldn’t be more excited to join forces with TerrAscend. The collaboration of talent and expertise across the combined organization will give TerrAscend a significant competitive advantage in developing, marketing, and supplying the most cutting-edge products in the hemp-derived cannabinoid market."
Scott Frohman, CEO of Grander
About TerrAscend Corp.
TerrAscend is a biopharmaceutical and wellness company that is committed to quality products, brands and services for the global cannabinoid market. TerrAscend provides support to patients and consumers through its wholly-owned subsidiaries, TerrAscend Canada Inc., a licensed producer of cannabis pursuant to the Cannabis Regulations under the Cannabis Act (Canada) that provides medical cannabis to patients through its online medical marketplace Solace Health, and Solace Health Network Inc., a clinical support program and education platform led by healthcare professionals. TerrAscend participates in the legal adult-use market in Canada through direct and indirect supply agreements in several provinces and intends to expand into the US market in states where cannabinoids have been legalized for therapeutic or adult-use. TerrAscend also launched Ascendant Labs, a company committed to the continuous improvement of cannabinoid expressing plants, which is a strategic joint venture with leading researchers Cistron Corp.
