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.