TerrAscend Expands Retail Footprint In Maryland With Acquisition Of Blue Ridge Wellness

TerrAscend TRSSF, a leading North American cannabis operator, announced on Tuesday that on June 26 it entered into a definitive agreement to acquire Hempaid, LLC, a medical marijuana dispensary in Maryland. The transaction expands TerrAscend’s footprint to three dispensaries in the state. Blue Ridge Wellness is well-positioned to achieve substantial sales growth following the commencement of adult-use sales in Maryland, which will begin 

this Saturday, July 1.

“Upon closing, Blue Ridge will be our third dispensary in Maryland ahead of the imminent launch of adult-use sales. We anticipate that Blue Ridge, combined with our other Maryland dispensaries, will drive substantial revenue growth and profitability for TerrAscend in Maryland, even prior to our scheduled move to a prime location later this year. We are focused on acquiring an additional dispensary to reach the four-dispensary cap in Maryland,” said Jason Wild, executive chairman of TerrAscend.

Under the terms of the agreement, TerrAscend will acquire Blue Ridge Wellness for total consideration of US$6.75 million including US$3.0 million in cash, with the remainder in a seller’s note.

The acquisition, which is expected to be accretive to TerrAscend on an EBITDA and cashflow basis, is subject to customary closing conditions, including regulatory approval. Following the close of the Transaction, TerrAscend's retail footprint will increase to 36 dispensaries nationwide.

Blue Ridge Wellness, a medical dispensary located in Parkville, Maryland, is currently on a revenue run rate of approximately US$4.3 million. TerrAscend expects to achieve significant sales and margin improvement at this location with the launch of adult-use and by offering a complete selection of its high-quality brands including Kind Tree, Gage, Cookies and Wana.

The Company has plans to relocate the Blue Ridge dispensary to a new, larger storefront it has already secured. This 3,900-square-foot, prime location is conveniently located near the White Marsh Mall, a high-traffic retail center.

TerrAscend expects to complete the relocation of Blue Ridge in the next six months.