Apothecarium Archives - Green Market Report

Debra BorchardtDebra BorchardtJanuary 28, 2020
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4min6860

TerrAscend Corp. (CSE: TER)(OTCQX: TRSSF) has named the company’s Executive Chairman Jason Ackerman as the interim CEO, replacing the current CEO Michael Nashat. Nashat will continue to serve as a member of the Board of Directors and act as a strategic advisor to the company.

Gravitas Acquisition Is Over

Just yesterday, TerrAscend terminated its decision to acquire Gravitas Nevada Ltd. which operates a retail cannabis dispensary in Las Vegas, Nevada under the trade name “The Apothecarium.”  The transaction, for $33.5 million in cash and 625 proportionate voting shares in the equity of TerrAscend equivalent to 625,000 common shares of the Company, was originally announced on February 11, 2019. TerrAscend has paid a $3mm reverse termination fee to the sellers, which had been placed in escrow in June of 2019.

As part of the termination, the Company is no longer liable for the remaining $30.5 million and proportionate voting shares in the equity of TerrAscend equivalent to 625,000 common shares of the Company. TerrAscend has agreed to continue licensing The Apothecarium, State Flower and Valhalla names and related intellectual property to Gravitas and its related operations in Nevada, pursuant to such final terms as will be mutually agreed by the parties.

Comments

“While it was a difficult decision, I believe given TerrAscend’s premier operating assets in the United States, it is now time for me to step into an advisory role and let new U.S.-based management guide TerrAscend as they expand and scale,” said Michael Nashat. “Jason’s experience in omnichannel retail, distribution, and operations are skills that TerrAscend will lean on as it enters this new growth phase. In my time working alongside Jason, it is clear that he is the right person to take on this role, and as a large shareholder, I believe this is what is best for securing TerrAscend’s future. I look forward to continuing to advise the Company in my board position and as a strategic advisor.”

“We are grateful for the hard work and perseverance that Michael Nashat has demonstrated during his tenure as CEO and Co-Founder of TerrAscend,” said Jason Ackerman. “We will continue to value Michael’s technical expertise, commitment to research and pharmaceutical knowledge, as he shifts to a strategic advisory role. We remain committed to driving shareholder value and focusing on the areas of our business that are generating rapid growth and greater margins, particularly in our valuable CaliforniaPennsylvania, and New Jersey markets. I look forward to building upon the foundation that Michael has laid, and leading the TerrAscend team forward in this next exciting phase.”


William SumnerWilliam SumnerFebruary 12, 2019
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3min23760

Yesterday, the San Francisco-based cannabis dispensary chain, The Apothecarium, announced that they had been acquired by TerrAscend Corp. (CSE: TER) for $118.4 million in cash and stock. Including in the purchase agreement are three retail dispensaries in San Francisco; one vertically integrated cannabis operation which includes cultivation, edibles manufacturing, and a retail dispensary location; and the edibles brand Valhalla Confections.

With more than 200 employees and $45 million in combined revenue, Apothecarium made for an attractive buy to TerrAscend, which recently has been making moves to enter the U.S. market.

Last month, TerrAscend completed the acquisition of another U.S. company Grander Distribution, LLC. Grander is a producer and distributor of hemp-based wellness products that are available in more than 10,000 worldwide retail locations.

“Teaming up with a larger company means that we will be able to bring the Apothecarium dispensary experience to more people, in more cities around the country,” said Apothecarium CEO Ryan Hudson in a statement. “Our customers won’t see major changes inside our dispensaries.”

Under the agreement, TerrAscend has agreed to pay $73.7 million in cash and to grant 7.325 million proportionate voting shares in the company. All full-time employees, including budtenders, will receive shares of TerrAscend.

Additionally, Apothecarium’s CEO and leadership team are expected to remain in their current roles. The completion of this acquisition is still pending regulatory approval from both the states of California and Nevada.

“Today’s news is another major step in executing TerrAscend’s US strategy,” said TerrAscend President Matthew Johnson. “We believe The Apothecarium is the model for operational excellence and will set the tone for our US cultivation and retail expansion, and we admire their philanthropic dedication and local community engagement.  We look forward to working together with the members of the current team to bring the Apothecarium’s unique experience to more communities and improve patient access to quality cannabis products and services.”



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