TerrAscend Corp., a North American cannabis operator, has sold its head office in Mississauga, Ontario, for 19.7 million Canadian dollars ($15 million).
The transaction appears to be below the asking price of CA$24.23 million, according to a listing on the real estate website Zolo that shares the same address and square footage as the former TerrAscend headquarters.
The sale continues a yearslong trend in the Canadian cannabis industry where licensed facilities have been sold off for steep losses.
Along with the trend of facility closures, Canada has also experienced an overall decline of licensed space across the country as industrywide oversupply reaches new heights.
By the end of 2022, the total area within federally licensed sites across Canada where cannabis cultivation occurred was almost 30% lower compared to May 2020.
TerrAscend’s head office was listed at 3610 Mavis Road in Mississauga, in a May 2023 filing.
In a previous regulatory filing, the company said the board had decided to move the registered office to 77 City Centre Drive, East Tower, Suite 501, in Mississauga, effective May 10.
TerrAscend did not immediately reply to a query from MJBizDaily on the location of its new headquarters.
“I am pleased we were able to complete the sale of this facility at an attractive price,” TerrAscend Executive Chair Jason Wild said in a news release announcing the sale.
“This latest debt paydown adds to the substantial progress we have made over the last three quarters in strengthening our balance sheet by reducing our debt and interest expense. The continued improvement of our balance sheet remains a priority.”
Wild said the company plans to pay down additional debt in the coming months.
It’s not known how much money TerrAscend put into the property, which it appears to have purchased in January 2017 for CA$6.9 million.
Part of TerrAscend’s 67,300-square-foot Mississauga facility was granted a license under the Canadian Access to Cannabis for Medical Purposes Regulations on July 10, 2017.
The first phase involved approximately 18,000 square feet for cultivation and processing of medical cannabis.
Besides Canada, TerrAscend also operates in California, Maryland, Michigan, New Jersey and Pennsylvania.
The company also announced it entered into a definitive agreement to acquire Peninsula Alternative Health, a medical marijuana dispensary in Maryland, for total consideration of $22.1 million.