Cannabis firm TerrAscend Corp. is set to acquire Maryland based medical marijuana cultivator and processor HMS Health from Curaleaf Holdings. The acquisition is estimated at a tune of $27.5 million.
The $27.5 million deal is considered a loss for Curaleaf, which reportedly obtained the operation for $32 million last year. The deal involves a cash payment of $25 million and another $2.5 million note with a 5% annual interest payable to Curaleaf by April 2022.
Curaleaf Holdings, it seems, is only too eager to dispose of its Maryland-based asset HMS Health, which runs a cultivation and processing plant in Frederick, Maryland. The facility produces medical marijuana products such as dried flowers and oil. TerrAscend Corps confirmed that plans are in place to expand the facility.
TerrAscend CEO and Executive Chairman Jackson Ackerman said the deal would allow the company to expand its operations and maintain its presence in the competitive and highly regulated medical cannabis industry.
Ackerman added that the merger of TerrAscend with HMS Health would improve their operations in nearby New York and Pennsylvania states. The cannabis firm hopes to influence economic growth through corporate support functions and improved management. The multi-million dollar acquisition is subject to regulatory approval.
TerrAscend Corps, a cross-border cannabis company, is based in Toronto and New York. The company issued a recent initial quarterly financial report posting considerable revenue growth.
Curaleaf Holdings, Inc., based in Massachusetts, confirmed the sale of its asset, HMS Health, and said the deal would enable it to proceed with its proposed acquisition of Maryland Compassionate Care and Wellness (MCCW). MCCW operates a cultivation and processing 5000 square foot facility in Taneytown, Maryland, and Herbology Dispensary in Gaithersburg.
Curaleaf also announced the sale of its processing license holder in Cumberland, Curaleaf Maryland, at about $4 million. The marijuana firm did not disclose the details of the buyer and the transaction