TerrAscend to buy Maryland marijuana firm from Curaleaf for $27.5 million

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Cross-border marijuana firm TerrAscend Corp. on Friday announced an agreement to acquire HMS, a Maryland medical cannabis processor and cultivator, from Curaleaf Holdings for $27.5 million.

The price tag includes $25 million in cash plus a $2.5 million note at 5% annual interest, and it’s due to Curaleaf in April 2022.

HMS operates a 22,000-square-foot cultivation and processing facility in Frederick, Maryland, that currently produces medical marijuana flower and oil “and has the capability to produce edibles upon regulatory approval,” according to a TerrAscend news release.

TerrAscend said it plans to expand the facility.

“This acquisition enables TerrAscend to expand its footprint into another robust limited license medical cannabis market with strong, long-term growth potential,” TerrAscend Executive Chair and CEO Jason Ackerman said in the release.

“By combining HMS with our industry-leading scaled operations in the adjacent states of Pennsylvania and New Jersey, we will leverage our strong management team and corporate support functions to drive economies of scale.”

The deal is subject to regulatory approval.

TerrAscend, which is based in both New York and Toronto, recently announced preliminary third-quarter financial statements signaling revenue growth.

Massachusetts-based Curaleaf said the sale of HMS will allow it to proceed with its proposed acquisition of Maryland Compassionate Care and Wellness, which has a 55,000-square-foot cultivation and processing facility in Taneytown, Maryland, and the Herbology dispensary in Gaithersburg.

Also on Friday, Curaleaf announced the sale of Curaleaf Maryland, holder of a processing license in Cumberland for $4 million.

The company did not reveal the buyer in that transaction.

“The asset sales we announce today will allow us to optimize Curaleaf’s vertically integrated presence in Maryland within the regulation which limits operators to a single grow and single processor,” Curaleaf CEO Joseph Lusardi said in a news release.