TerrAscend Broadcasts the Acquisition of Ilera Healthcare

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— Ilera’s present income run-rate is over US$43 million 1, up from whole gross sales in 2018 of lower than US$eight million 1.

— State-of-the-art, absolutely built-in seed-to-sale operator in Pennsylvania provides to TerrAscend’s world portfolio of operations throughout a number of U.S. States, Canada and the EU.

— Ilera’s crew members will proceed of their present roles and be a part of TerrAscend’s quickly increasing US operations.

—The Firm seems to be ahead to giving up to date 2019 income steering within the coming weeks, which can embody projections for Ilera’s gross sales contribution put up the transaction’s focused shut within the 4th quarter.

TORONTO, Aug. 2, 2019 /PRNewswire/ – TerrAscend Corp. (CSE: TER;OTCQX: TRSSF) (“TerrAscend” or “the Firm”), the primary and solely world cannabis firm licensed for gross sales in Canada, the US, and the EU, at present introduced the signing of a definitive settlement to accumulate Ilera Healthcare (“Ilera”), certainly one of 5 vertically-integrated cannabis cultivator, processor, and dispensary operators in Pennsylvania, with such vertically-integrated licenses additionally known as “Tremendous Licenses” within the state.

Ilera’s cultivation and processing facility in Waterfall, PA features a genetic library of over 170 cannabis strains, a state-of-the-art greenhouse designed for optimum plant progress and minimal environmental affect, clear CO2 and ethanol extraction capabilities, and modern packaging know-how. Ilera’s dispensary in Plymouth Assembly, PA was designed to create a welcoming, secure, and safe surroundings for sufferers. Within the subsequent six months, the corporate expects to open two extra dispensaries in Area 1, which incorporates Lancaster, Philadelphia, Chester, Bucks, Berks, Delaware and Schuylkill counties. Along with promoting its merchandise in its personal dispensary, Ilera distributes its dried flower, concentrates, tinctures, and topicals to 50 of Pennsylvania’s 52 medical cannabis dispensaries.

TerrAscend has agreed to accumulate 100% of the fairness of Ilera for whole consideration of between US$125$225 million, paid in a mixture of money and TerrAscend shares. On closing, TerrAscend can pay to the sellers US$25 million in money, topic to customary closing changes, and a further US$25 million price of proportionate voting shares within the fairness of TerrAscend equal to roughly 5,059.102 proportionate voting shares (that are every exchangeable for 1,000 TerrAscend frequent shares, being issued at an issuance worth of US$ 4.94 per share, based mostly on the 45 day volume-weighted common buying and selling worth of TerrAscend’s frequent shares as of Monday, July 29, 2019 of C$6.5307 and an alternate price of C$1.3216 per US$1.00). Extra money consideration of as much as US$175 million2 in mixture could also be paid to the sellers based mostly on Ilera reaching sure specified income and profitability targets, with staged funds being made in 2020 and 2021. The transaction is predicted to shut within the 4th quarter of 2019, topic to regulatory approvals by the Pennsylvania Division of Well being in addition to sure customary closing circumstances.

TerrAscend reiterates its present 2019 steering of income in extra of CAD$135 million on its present enterprise, which doesn’t ponder contribution from the Ilera transaction. The Firm seems to be ahead to giving up to date 2019 income steering within the coming weeks, which can embody projections for Ilera’s gross sales contribution put up the transaction’s focused shut within the 4th quarter.

Ilera’s senior working crew – together with CEO Greg Rochlin, Director of Cultivation Andrew Sack, and Chief Scientific Officer Oludare Odumosu– will proceed in administration positions and are anticipated to work inside the broader TerrAscend group. All the staff on the firm’s Waterfall cultivation and manufacturing web site and their Plymouth Assembly dispensary web site are anticipated to hitch TerrAscend’s quickly increasing US operations. Ilera is at the moment the second largest employer in Waterfall, PA.

“At the moment’s information marks one other vital step ahead in our U.S. growth technique,” mentioned Matthew Johnson, President of TerrAscend Corp., and TerrAscend USA, Inc. “Greg Rochlin and the remainder of the Ilera crew have constructed a considerable enterprise that delivers prime quality, secure, efficacious drugs to sufferers by scientific innovation, operational integrity, and best-in-class affected person schooling and repair. Their crew brings sturdy working expertise and scientific information that will likely be invaluable as we scale our enterprise within the U.S. and past. We see nice potential in bringing Ilera manufacturers and formulations to the opposite jurisdictions during which we function. We additionally plan on launching California-born Valhalla Confections and State Flower manufacturers and our main premium Canadian cannabis model, Haven St. into the Pennsylvania market. We’re thrilled to have discovered a crew that shares in TerrAscend’s values and imaginative and prescient and stay up for working along with Greg and his crew as we proceed to construct the main North American Operator (NAO) within the cannabis house.”

“It’s clear that we’ve discovered an incredible strategic and cultural match with TerrAscend,” mentioned Greg Rochlin, CEO of Ilera. “We’re happy with the corporate we’ve constructed and we’re excited to have discovered a accomplice who acknowledges the standard and potential of our seed-to-store operations. TerrAscend’s roots in well being sciences and their dedication to innovation and high quality make them the best accomplice for us as we develop our enterprise. We’re excited to develop into a part of this inspirational crew which has made substantial progress in changing into one of many main firms within the sector, whereas placing sufferers first.”

Osagie Imasogie, Chairman of the Board for Ilera Healthcare mentioned, “Our board is actually excited and absolutely helps this transaction. Collectively Ilera and TerrAscend carry a wealth of data and experience to the market. Our alignment will present a good larger service of care to sufferers in our state.”

About TerrAscend
TerrAscend supplies high quality merchandise, manufacturers, and companies to the worldwide cannabinoid market. As the primary North American Operator (NAO) with scale operations in each Canada and the US, the Firm participates within the medical and authorized grownup use market throughout Canada and in a number of US states the place cannabis has been legalized for therapeutic or grownup use. Moreover, TerrAscend will quickly be the primary and solely cannabis firm with gross sales within the US, Canada, and Europe because it has acquired EU GMP certification for its manufacturing facility in Mississauga, Ontario. TerrAscend operates plenty of synergistic companies, together with The Apothecarium, an award-winning cannabis dispensary with a number of retail areas in California and Nevada; Come up Bioscience Inc., a producer and distributor of hemp-derived merchandise; Ascendant Laboratories Inc., a biotechnology and licensing firm dedicated to the continual enchancment of cannabinoid expressing crops; Solace RX Inc., a proposed Drug Preparation Premises (DPP) targeted on the event of novel formulations and supply kinds; and Valhalla Confections, a producer of premium cannabis-infused edibles. For extra info, go to https://www.terrascend.com

About Ilera Healthcare  
Ilera Healthcare is Pennsylvania’s premier medical marijuana cultivator, processor and dispenser, providing sufferers registered within the Pennsylvania Medical Marijuana program with merchandise that present the aid they wish to lead more healthy lives. Ilera Healthcare operates its major dispensary in Plymouth Assembly, Pennsylvania, with plans to open two extra dispensary websites in Pennsylvania inside the 12 months. By means of their state-of-the-art cultivation, extraction, and processing facility in Waterfall, Pennsylvania, Ilera Healthcare strives to drive medical developments by its formulations and form the way forward for medical marijuana-based therapies. For extra details about Ilera Healthcare, go to http://www.ilerahealthcare.com.

Warning Relating to Hashish Operations in the US

Traders ought to word that there are vital authorized restrictions and laws that govern the cannabis trade in the US.  Hashish stays a Schedule I drug underneath the US Managed Substances Act, making it unlawful underneath federal legislation in the US to, amongst different issues, domesticate, distribute or possess cannabis in the US. Monetary transactions involving proceeds generated by, or meant to advertise, cannabis-related enterprise actions in the US could type the idea for prosecution underneath relevant US federal cash laundering laws.

Whereas the strategy to enforcement of such legal guidelines by the federal authorities in the US has trended towards non-enforcement in opposition to people and companies that adjust to medical or adult-use cannabis applications in states the place such applications are authorized, strict compliance with state legal guidelines with respect to cannabis will neither absolve TerrAscend of legal responsibility underneath US federal legislation, nor will it present a protection to any federal continuing which can be introduced in opposition to TerrAscend.  Following any funding made by TerrAscend in operations in the US, enforcement of federal legal guidelines in the US will likely be a big threat to the enterprise of TerrAscend and any proceedings introduced in opposition to TerrAscend thereunder could adversely have an effect on TerrAscend’s operations and monetary efficiency.

Ahead Wanting Data
This information launch comprises “forward-looking info” inside the that means of relevant securities legal guidelines. Ahead-looking statements on this press launch could also be recognized by means of phrases equivalent to, “could”, “would”, “might”, “will”, “seemingly”, “anticipate”, “anticipate”, “consider, “intend”, “plan”, “forecast”, “challenge”, “estimate”, “outlook” and different related expressions, and embody statements with respect to the completion of the transactions mentioned herein, the fee of future consideration therefor and the anticipated advantages thereof, in addition to future plans for Ilera (together with extra dispensaries) and gross sales by TerrAscend into Europe. Ahead-looking statements aren’t a assure of future efficiency and are based mostly upon plenty of estimates and assumptions of administration in gentle of administration’s expertise and notion of traits, present circumstances and anticipated developments, in addition to different components related within the circumstances, together with assumptions in respect of present and future market circumstances, the present and future regulatory surroundings; and the supply of licenses, approvals and permits.

Though TerrAscend believes that the expectations and assumptions on which such forward-looking statements are based mostly are affordable, undue reliance shouldn’t be positioned on the forward-looking statements as a result of TerrAscend may give no assurance that they’ll show to be appropriate. Precise outcomes and developments could differ materially from these contemplated by these statements. Ahead-looking statements are topic to quite a lot of dangers and uncertainties that might trigger precise occasions or outcomes to vary materially from these projected within the forward-looking statements. Such dangers and uncertainties embody, however aren’t restricted to, the lack of the events to fulfill the circumstances to closing of the transaction in a well timed means or in any respect; TerrAscend’s potential to fund any future consideration funds; dangers associated to federal, state, provincial, territorial, native and international authorities legal guidelines, guidelines and laws, together with federal and state legal guidelines in the US regarding cannabis operations in the US; TerrAscend’s potential to efficiently combine any acquired companies sooner or later; and fluctuations in international foreign money alternate charges.

Monetary Outlook

This press launch comprises monetary outlook inside the that means of relevant Canadian securities legal guidelines.  The monetary outlook has been ready by administration of TerrAscend to offer an outlook for calendar 12 months 2019 and will not be applicable for another goal.  The monetary outlook has been ready based mostly on plenty of assumptions together with the assumptions mentioned underneath the heading “Ahead Wanting Data” above and assumptions with respect to manufacturing, pricing, demand and that the acquisition of the Nevada operations of The Apothecarium will likely be accomplished late within the third quarter of 2019.  The precise outcomes of TerrAscend’s operations for any interval will seemingly fluctuate from the quantities set forth in these projections and such variations could also be materials.  TerrAscend and its administration consider that the monetary outlook has been ready on an affordable foundation. Nevertheless, as a result of this info is extremely subjective and topic to quite a few dangers, together with the dangers mentioned underneath the heading “Ahead Wanting Data” above, it shouldn’t be relied on as essentially indicative of future outcomes.  Besides as required by relevant Canadian securities legal guidelines, TerrAscend undertakes no obligation to replace the monetary outlook.

The statements on this press launch are made as of the date of this launch.  TerrAscend disclaims any intent or obligation to replace any forward-looking info, whether or not on account of new info, future occasions or outcomes or in any other case, aside from as required by relevant securities legal guidelines.  TerrAscend undertakes no obligation to touch upon analyses, expectations or statements made by third events in respect of TerrAscend, its securities, or monetary or working outcomes (as relevant).

1 Primarily based on unaudited monetary statements ready in accordance with U.S. GAAP.

2 Such money consideration will likely be paid out of working capital and / or subsequent financing proceeds.

SOURCE TerrAscend

Ryan Allway

About Ryan Allway

Mr. Allway has over a decade of expertise within the monetary markets as each a non-public investor and monetary journalist. He has been actively concerned within the cannabis trade since its inception, overlaying private and non-private firms.




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