FLEMINGTON, N.J. (Hunterdon County) — TerrAscend Corp. has closed its previously announced transaction with Aunt Mary’s Dispensary in Flemington, adding a fifth New Jersey retail location to the cannabis company’s portfolio.
TerrAscend said Aunt Mary’s currently generates more than $10 million in annualized revenue and is expected to contribute immediately to the company’s earnings before interest, taxes, depreciation and amortization and free cash flow.
“Aunt Mary’s generates more than US$10 million in annualized revenue today, and we see meaningful opportunities to enhance sales and profitability through the integration of our premium brand portfolio,” TerrAscend Executive Chairman Jason Wild said. “We are excited to welcome the Aunt Mary’s team to the TerrAscend family.”
TerrAscend entered into an agreement with Aunt Mary’s and other parties in June for total consideration of $9 million.
Under the agreement, TerrAscend provided $3 million through a five-year unsecured convertible debenture bearing 6% annual interest for an option to purchase 35% of Aunt Mary’s. An additional $6 million in cash would be payable upon exercise of the option.
TerrAscend said the transaction was structured to conform with New Jersey’s regulatory framework for investment in diversely owned cannabis businesses.
Upon exercise of the option and subject to additional conditions, TerrAscend would be able to fully consolidate Aunt Mary’s into its financial results.
The company said the transaction would increase its consolidated retail footprint to 21 dispensaries across five U.S. states and Canada.
