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TerrAscend Corp (OTCMKTS:TRSSF) Signs Agreement To Purchase Ilera Healthcare

TerrAscend Corp (OTCMKTS:TRSSF) has announced that it has entered into a definitive agreement for the acquisition of Ilera Healthcare. Ilera is one of the vertically integrated cannabis grower, processor and dispensing operators in the state of Pennsylvania.

Ilera cultivates over 170 cannabis strains

Ilera has a growing and processing facility in Waterfall PA that also includes a genetic library of more than 170 different cannabis strains, modern packaging technology and clean ethanol and CO2 extraction capabilities and an ultramodern greenhouse. The greenhouse has been designed to offer optimal environmental conditions for plant growth. Ilera also has a dispensary located in Plymouth Meeting PA which is positioned to offer a welcoming secure and safe setting for patients.

The company is planning in the next six months to open two more dispensaries in Region 1 which includes Chester, Philadelphia, Lancaster, Berks, Delaware, Bucks and Schuylkill counties. Besides Ilera selling its products in its dispensaries it also distributes concentrates, dried flower, topicals and tinctures to 50 out of 52 medical cannabis dispensaries in Pennsylvania.

Transaction to cost between $125 million and $225 million

TerrAscend has reached an agreement to acquire 100% interest of Ilera for a total cost of between $125 million and $225 million which shall be paid in cash and TerrAscend shares. Once the transaction is finalized TerrAscend is expected to pay sellers $25 million in cash and proportionate voting shares of around $25 million which is equivalent to 5 million shares. Equally up to $175 million in total will be paid to sellers in 2020 and 2021 subject to Ilera meeting certain profitability and revenue obligations.

The company expects to close the transaction in Q4 2019 depending to regulatory approval from the Health Department of Pennsylvania and other routine closing requirements. The cannabis company expected revenue of more than C$135 million in 2019 which does not include the contribution of the Ilera transaction.

After the transaction is completed is expected that the senior operating team of Ilera will continue holding management positions in the new TerraAscend entity. The employees of the Plymouth Meeting dispensary and Waterfall cultivation facility will also join TerraAscend.

By Steven Russell

Steve covers business and investing in emerging medical marijuana markets. Steve graduated from the university of New Orleans with a degree in Broadcast Journalism. Steve has published several articles in professional journals and magazines. His experience gives readers an inside look at the intersection of his specialties, business and medical marijuana.

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