A marijuana multistate operator last week finalized its $9 million purchase of a New Jersey cannabis retail license.
With the purchase of Hunterdon County-based Aunt Mary’s Dispensary, Toronto and Pennsylvania-headquartered TerrAscend Corp. now runs five cannabis stores in the $1.1 billion annual market, the company said in a Sept. 16 press release.
Terms of the sale, first floated in June, included a $3 million unsecured five-year convertible note at 6% interest and $6 million payable in cash, according to filings.
That’s slightly more than the $5.7 million in free cash flow that the company reported having on hand during quarterly earnings last month.
How much is a New Jersey marijuana store worth?
The sale provides a window into the value of a cannabis retail license in the market, where sales launched in 2022. There are more than 320 cannabis retailers in New Jersey, according to the state Cannabis Regulatory Commission.
New Jersey has no statewide license cap, but retail opportunities have been constrained thanks to local bans. About two-thirds of the state’s 564 municipalities prohibit adult-use sales.
And regulations differ from jurisdiction to jurisdiction, creating more difficulties for operators wishing to open new stores.
In the case of Aunt Mary’s, the store “generates more than US$10 million” in annual revenue, TerrAscend Executive Chairman Jason Wild said in a statement.
The company sees “meaningful opportunities to enhance sales and profitability through the integration of our premium brand portfolio,” Wild added.
What is marijuana MSO TerrAscend doing after cannabis rescheduling?
The purchase follows TerrAscend’s announced plans to ramp up growth in the wake of April’s federal Justice Department final order reclassifying medical marijuana as a Schedule 3 drug.
“We’re looking to go deeper into existing states,” TerrAscend Chief Legal Officer Lynn Gefen told MJBizDaily at the time.
TerrAscend reported $10 million in quarterly losses on $67 million in revenue during its most recent earnings call last month.
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The company now runs 21 cannabis stores in five U.S. states and Canada, according to recent filings.
TerrAscend has vertically integrated operations in New Jersey, Maryland and MMJ-only Pennsylvania. It also owns cannabis stores in Ohio and California.
