TerrAscend to Acquire Ilera Healthcare in $125M–$225M Deal to Expand U.S. Medical Cannabis Footprint

On August 2, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that TerrAscend, the first and only company licensed to sell cannabis in Canada, the United States, and the European Union, announced it had signed a definitive agreement with Ilera Healthcare to acquire 100% of Ilera Healthcare’s equity, including five real estate assets for cannabis cultivation and processing, as well as related licenses.

Ilera Healthcare, based in Plymouth, Pennsylvania, is dedicated to creating a friendly and safe environment for patients. Ilera’s cultivation techniques and processing facilities feature a genetic library comprising more than 170 cannabis strains, advanced greenhouses that optimize plant growth and minimize environmental impact, high-quality clean CO₂ and ethanol extraction capabilities, and leading-edge packaging technology.

Over the next six months, Ilera is expected to add two medical cannabis dispensaries in Lancaster, Philadelphia, Chester, Bucks, Berks, Delaware, and Schuylkill counties. In addition to selling its own products, Ilera distributes dried flower, concentrates, tinctures, and topical medications to 50 of the 52 medical marijuana dispensaries in Pennsylvania.

TerrAscend has agreed to acquire 100% of Ilera’s equity in a transaction valued between $125 million and $225 million, payable in cash and company stock. Upon closing, TerrAscend will pay Ilera $25 million in cash and issue additional proportional voting shares valued at $25 million. The acquisition is expected to be completed in the fourth quarter of 2019.

Upon completion of the acquisition, Ilera’s CEO Greg Rochlin, Director of Cultivation Technology Andrew Sack, and Chief Scientific Officer Oludare Odumosu are expected to continue in their management roles at TerrAscend. Additionally, all employees from Ilera’s production and cultivation facilities as well as its medical operations are anticipated to join the company.

Matthew Johnson, President of TerrAscend Corporation, stated, “This acquisition marks another significant step in our expansion strategy in the United States. Greg Rochlin and the rest of the Ilera team provide patients with high-quality, safe, and effective medications through scientific innovation, ethical business practices, and premier patient education and services. Their team brings robust operational experience and scientific expertise, which will be a valuable asset as we expand our business in the U.S. and other countries. Next, we plan to introduce our California-born Valhalla Confections and State Flower brands, as well as Haven St., our leading premium Canadian cannabis brand, into the Pennsylvania market.”

Ilera Healthcare CEO Greg Rochlin stated, “TerrAscend is a strong strategic and cultural fit for us. We are delighted to have found a partner that recognizes the quality and potential of our seed-to-store operations. TerrAscend’s foundation in health sciences, along with its commitment to innovation and quality, makes it an ideal partner for growing our business.”

Osagie Imasogie, Chairman of the Board of Ilera Healthcare, stated: “Our Board is highly enthusiastic and fully supportive of this transaction. Together, Ilera and TerrAscend bring a wealth of knowledge and expertise to the market. Our alliance will deliver superior healthcare services to patients in the state.”

TerrAscend is a cannabis company dedicated to providing high-quality products, brands, and services to the global cannabis market. As the first North American Operator (NAO) with large-scale operations in both Canada and the United States, the company produces cannabis products primarily for therapeutic use, and its manufacturing facilities are certified under EU Good Manufacturing Practice (GMP) standards.

Ilera Healthcare is Pennsylvania’s premier medical cannabis cultivator, processor, and dispenser, providing products to patients registered in the Pennsylvania Medical Marijuana Program to help them lead healthier lives. Ilera Healthcare operates its own primary care dispensary in Plymouth, Pennsylvania, and plans to open two additional clinics within the state later this year. Leveraging its state-of-the-art cultivation, extraction, and processing facilities, Ilera Healthcare strives to advance its formulations and shape the future possibilities of medical cannabis therapies.

(Compiled by Xu Wenjuan)