TerrAscend Corp. (CSE: TER) (OTC: TRSSF) announced Wednesday the signing of definitive agreements for a series of transactions to purchase ABI SF, LLC, which runs a Bay Area cannabis cultivation facility and owns the State Flower brand.
At first, TerrAscend agreed to acquire 49.9% of the equity of State Flower for a total of $2.85 million from the conversion of already issued convertible debenture and subject to regulatory approvals, the company said in a press release.
Now, it has agreed to purchase the remaining 50.1% of the equity of State Flower for total consideration based on future revenue in a predetermined period of 12 months.
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State Flower brand is known for high-quality cannabis flower sold via dispensaries in California and Nevada, including The Apothecarium, with whom TerrAscend has already completed a series of transactions.
"We're excited to add the prestigious State Flower brand to our portfolio," Matthew Johnson, president of TerrAscend Corp. and TerrAscend USA, Inc. said in a statement.
"Daniel Wacks and Jeremy Cohen are skilled cannabis cultivators with years of experience operating in a highly regulated market and we are thrilled to work with them to expand the State Flower facilities and brand presence."
TerrAscend also supported enhancements of State Flower’s cultivation facility that should advance the scope of its production by lengthening a line of credit to $3.75 million, according to the company.
Wacks, the president of State Flower, said that the company is excited to work with TerrAscend, a partner he said acknowledges the value of the State Flower team.
"We look forward to working together to build best-in-class cultivation capabilities in all jurisdictions where TerrAscend operates, to expand the State Flower brand presence, and become part of an inspirational team that's making major progress towards becoming one of the top companies in the sector."
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