Canadian multi-state cannabis business operator TerrAscend Corp. acquired an additional 12.5% stake of local subsidiary TerrAscend NJ LLC from BWH NJ LLC and California-based private equity firm Blue Marble Ventures LLC.
The deal announced Aug. 19 includes an initial cash payment of $25 million with an additional $25 million payment comprised of a combination of cash and TerrAscend common shares to be paid on or before Dec. 31.
TerrAscend now owns 87.5% of the issued and outstanding equity of TerrAscend NJ.
TerrAscend will also have the chance to buy an additional 6.25% of TerrAscend NJ at a pre-determined valuation between April 1 and through June 15 of next year.
TerrAscend Executive Chairman Jason Wild said the company is “thrilled” to increase its stake in TerrAscend NJ ahead of adult-use sales, for which the Cannabis Regulatory Commission announced its initial rules in a public meeting on Aug. 19.
The company also announced a brand partnership that day with international edibles brand Cookies, for which it will be New Jersey’s sole manufacturer and retailer.
TerrAscend NJ operates a 140,000-square-foot cultivation and processing facility in Boonton Township and two Apothecarium alternative treatment centers in Maplewood and Phillipsburg. A third ATC is expected to come on board in Lodi before year’s end.
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