TerrAscend Seeks Stake in US Hemp Market with Asset Acquisition

TerrAscend (CSE:TER) announced a definitive agreement for the acquisition of the assets of Grander Distribution, a company working on the production and distribution of hemp-derived wellness products.

As quoted in the press release:

Their whole-plant hemp extract products are made in the USA and are available for sale in ~10,000 retail locations worldwide. Grander expects 2018 sales to exceed US$10,000,000 with the most recent one month run rate of over US$14,000,000 on an annualized basis. The US$13,000,000 purchase price is an equal combination of cash and stock with the potential for additional consideration of up to US$10,000,000 based on revenue targets of US$35,000,000 in 2019 and US$50,000,000 in 2020. The transaction is expected to close by January 15, 2019, upon completion of standard closing requirements.

“We are thrilled to welcome the Grander team and look forward to leveraging their expansive distribution and branding expertise as we complete the first acquisition of our US strategy.  In addition to their seasoned sales force, Grander has a proven track-record of driving the development, manufacturing and processing of innovative hemp-derived cannabinoid products. With the passing of the 2018 US Farm Bill, and the closing of this transaction, TerrAscend will be well positioned to take advantage of the substantial hemp-derived product opportunity,” said Matthew Johnson, president TerrAscend Corp., and TerrAscend USA, Inc.

Click here to read the full press release.

Source: www.newswire.ca