TerrAscend Completes Sale of Mississauga Facility for CAD$19.7 Million, Further Reduces Debt

2.4 min readPublished On: May 23rd, 2023By

LOS ANGELES– TerrAscend Corp. A cannabis operator in North America, has announced the successful completion of the sale of its facility located in Mississauga, Canada, for CAD$19.7 million. The company plans to utilize the net proceeds from the sale to pay off its existing debt, further strengthening its financial position.

The sale of the facility marks another significant step for TerrAscend in reducing its debt and interest expenses, highlighting the company’s commitment to improving its balance sheet. Jason Wild, the Executive Chairman of TerrAscend, expressed satisfaction with the sale, stating, “I am pleased we were able to complete the sale of this facility at an attractive price. This latest debt paydown adds to the substantial progress we have made over the last three quarters in strengthening our balance sheet by reducing our debt and interest expense. The continued improvement of our balance sheet remains a priority. We plan to pay down additional debt in the coming months.”

The completion of this transaction underscores TerrAscend’s strategic approach to optimizing its operations and focusing on core markets. With vertically integrated operations in Pennsylvania, New Jersey, Maryland, Michigan, and California, as well as retail operations in Canada, the company is well-positioned within the cannabis industry. TerrAscend operates dispensary retail locations, including The Apothecarium and Gage, and boasts scaled cultivation, processing, and manufacturing facilities.

TerrAscend is recognized for its cultivation and manufacturing practices that consistently deliver high-quality cannabis products. These offerings cater to both medical and legal adult-use markets, positioning the company as a leader in product selection. TerrAscend also owns several complementary businesses and brands, including Gage Cannabis, The Apothecarium, Ilera Healthcare, Kind Tree, Legend, State Flower, and Valhalla Confections.

However, it is crucial to note that the cannabis industry in the United States operates under significant legal restrictions and regulations. Despite the legalization of cannabis in various states, it remains classified as a Schedule I drug under the US Controlled Substances Act. This classification renders activities such as cultivation, distribution, or possession of cannabis illegal under federal law. Therefore, financial transactions associated with cannabis-related business activities in the United States may be subject to prosecution under federal money laundering legislation.

While the federal government’s approach to enforcing these laws has generally become more lenient towards individuals and businesses complying with state-level cannabis programs, TerrAscend acknowledges that strict adherence to state laws does not absolve the company from potential liability under federal law. Compliance with state regulations also does not provide a defense in federal proceedings. The enforcement of federal laws regarding cannabis in the United States poses a significant risk to TerrAscend’s operations and financial performance.

TerrAscend’s successful sale of its Mississauga facility reflects the company’s commitment to optimizing its operations and strengthening its financial standing. With a focus on debt reduction and improving its balance sheet, TerrAscend continues to position itself as a key player in the North American cannabis industry.

About the Author: News Team

Newsteam at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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