TerrAscend Obtains $25 Million Loan, Buys Third Maryland Dispensary

The company is looking for another acquisition in Maryland.

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) announced Tuesday that it had both closed on a $25 million commercial loan in its home nation of Canada and also acquired its third Maryland dispensary in a $6.75 million deal.

The loan, which is backed by Stearns Bank, was obtained with an interest rate of 10.5% and matures in December 2024.

Although Executive Chairman Jason Wild didn’t say in a press release what the money would be used for, the company put $3 million cash down for the acquisition on Tuesday of Hempaid LLC, which does business as Blue Ridge Wellness in the town of Parkville, Maryland. The other $3.75 million in the deal will be in the form of a seller’s note, according to a press release.

The acquisition comes just days before Maryland is set to launch recreational marijuana sales. The deal is also TerrAscend’s second in the state this month, after it purchased Derby I LLC, dba Peninsula Alternative Health, for $22.1 million in a mostly stock deal.

Blue Ridge Wellness brings TerrAscend’s U.S. footprint to 36 dispensaries nationwide, along with its cannabis properties in California, Michigan, New Jersey, and Pennsylvania.

The shop is currently operating with a run rate of $4.3 million, according to a press release. TerrAscend said it expects the acquisition will further strengthen its balance sheet, as it’s located near a “high-traffic retail center” shopping mall.

“We anticipate that Blue Ridge, combined with our other Maryland dispensaries, will drive substantial revenue growth and profitability for TerrAscend in Maryland, even prior to our scheduled move to a prime location later this year. We are focused on acquiring an additional dispensary to reach the four-dispensary cap in Maryland,” Wild said in a release.

The news also follows the uplisting of TerrAscend to the Toronto Stock Exchange, a victory the company announced just last week.

John Schroyer

John Schroyer has been a reporter since 2006, initially with a focus on politics, and covered the 2012 Colorado campaign to legalize marijuana. He has written about the cannabis industry specifically since 2014, after being on hand for the first-ever legal cannabis sales on New Year’s Day that year in Denver. John has covered subsequent marijuana market launches in California and Illinois, has written about every aspect of the marijuana trade, and was part of the team that built the cannabis industry’s first-ever trade show, MJBizCon. He joined Green Market Report in 2022.

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