TerrAscend Corp. Sells Mississauga Head Office Below Asking Price Amidst Canadian Cannabis Industry Trends

LOS ANGELES– TerrAscend Corp. a North American cannabis operator, recently finalized the sale of its head office in Mississauga for 19.7 million Canadian dollars ($15 million). The transaction, however, fell short of the initial asking price of CA$24.23 million, as indicated on the real estate website Zolo, which listed the property’s address and square footage.

This sale follows a prevailing trend in the Canadian cannabis industry, where licensed facilities have been offloaded at significant losses. The country has witnessed an overall decline in licensed space, coupled with facility closures, as the industry grapples with an overwhelming oversupply.

As of the end of 2022, the total area utilized for cannabis cultivation within federally licensed sites in Canada was nearly 30% lower than in May 2020, highlighting the challenges faced by the industry.

TerrAscend’s former head office, located at 3610 Mavis Road in Mississauga, was listed for sale in May 2023. The company had previously announced its decision to move the registered office to a new address in Mississauga, effective May 10.

TerrAscend did not provide immediate information regarding the location of its new headquarters, despite inquiries. The company’s Executive Chair, Jason Wild, expressed satisfaction with the sale, stating that the attractive price contributes to the ongoing efforts to strengthen the company’s balance sheet, reduce debt, and lower interest expenses.

Wild further mentioned that TerrAscend plans to continue paying down debt in the coming months. The exact amount the company invested in the property remains unknown, although it appears to have been purchased in January 2017 for CA$6.9 million.

A portion of TerrAscend’s 67,300-square-foot facility in Mississauga had obtained a license under the Canadian Access to Cannabis for Medical Purposes Regulations in July 2017. The initial phase of the facility encompassed approximately 18,000 square feet dedicated to the cultivation and processing of medical cannabis.

In addition to its presence in Canada, TerrAscend operates in various U.S. states, including California, Maryland, Michigan, New Jersey, and Pennsylvania. The company recently announced a definitive agreement to acquire Peninsula Alternative Health, a medical marijuana dispensary in Maryland, for a total consideration of $22.1 million.

TerrAscend’s shares trade as TER on the Canadian Securities Exchange and as TRSSF on the U.S. over-the-counter markets. The company’s financial moves and the broader industry dynamics will be closely monitored by investors and industry observers in the evolving cannabis landscape.