TerrAscend, a North American cannabis operator, today announced it has received regulatory approval from the Maryland Cannabis Administration (MCA) for the acquisition previously announced on June 8, 2023, of Derby 1, a medical dispensary in Maryland. The transaction will add a second dispensary to the company’s Maryland footprint in advance of adult-use sales, which will begin on July 1, 2023. The acquisition is expected to close shortly.
“We are thrilled to receive regulatory approval for this acquisition just 10 days after signing the definitive agreements,” said Jason Wild, Executive Chairman of TerrAscend. “The timing could not be better as this approval positions TerrAscend to close this acquisition prior to the launch of Maryland’s adult use program on July 1st. We expect Peninsula to quickly become one of our highest performing dispensaries nationwide. In addition, we have made further progress, and hope to sign definitive agreements to acquire two additional dispensaries in Maryland in the coming weeks. We fully expect to enjoy the same level of success in MD that we have achieved in NJ during the first 14 months of their adult use program.”
Peninsula Alternative Health is one of the highest performing medical dispensaries in Maryland with a net revenue run rate in 2023 of approximately US$14 million. Strategically located near the Delaware border in Salisbury, Maryland, this 8,500 square foot dispensary has no direct competitor within a 25-mile radius. TerrAscend expects to achieve significant sales and margin improvement by supplying a complete selection of its high-quality brands including Kind Tree, Gage, Cookies and Wana. Following the close of the Transaction, TerrAscend's retail footprint will increase to 35 dispensaries nationwide.