TerrAscend, an Ontario, Canada-based vertically integrated cannabis company, agreed to acquire Ilera Healthcare, a Pennsylvania-based marijuana cultivator, processor and dispensary operator for up to $225 million (CA$297 million).
The total cost of the transaction will depend on Ilera reaching certain revenue and profitability targets.
For now, TerrAscend is set to pay $25 million in cash and $25 million in stock with an additional $175 million to be paid in cash depending on the Ilera targets being met.
- Ilera operates a dispensary in Plymouth Meeting, Pennsylvania, with plans to open two more dispensaries in the state by the end of this year.
- The company also has a cultivation, extraction and processing facility in Waterfall in the state and distributes its products to 50 of the state’s 52 dispensaries.
- The transaction is expected to close in the fourth quarter of 2019.
TerrAscend, which trades on the Canadian Securities Exchange as TER, reported revenues of CA$14.6 million ($10.95 million) for the quarter ended March 31, 2019, with a net loss of CA$11.2 million.
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